16 Apr

Properties viewed as pensions for landlords

Properties viewed as pensions for landlords

Many buy-to-let landlords view their rental portfolios as their pension fund, according to new research.

A study conducted by Property Let By Us found that the recent changes in pension rules has allowed many people aged over 55 to become landlords for the first time, but young people are also relying on rental properties to support them in later life.

It was discovered 70 per cent of younger landlords have properties as their only pension provision.

Overall, one in five landlords said their portfolio was part of their pension plans, with 30 per cent saying they hoped their property investments would benefit their children in the long-term.

It also appears many landlords are optimistic about their future prospects, with 28 per cent planning to expand the number of properties they own in 2015.

Letting agents could also be set to benefit from this growing trend, with more than a third of landlords involved in the survey confirming they plan to use a letting agent to manage their properties.
"With mortgage rates at an all-time low and rents rising across the UK, it is no surprise that more and more investors are entering the buy to let market. Our research shows that many landlords see their property portfolios as a long term investment and a major part of their pension planning," said Jane Morris, managing director of Property Let By Us.

She added that anyone planning to become a landlord needs to consider the type of property and the location in order to maximise returns. It may also be worth contacting a local letting agent or estate agency to find out if there is demand in the area and what to expect for a monthly rent.ADNFCR-1222-ID-801783828-ADNFCR

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