Taylor Scott International News
The new pension freedoms that came into force last week in the UK could trigger a huge interest in over 55s becoming landlords for the first time, it is claimed. New research by Property Let By Us, an online letting agent, shows that for 70% of younger landlords, their buy to let portfolio is their only pension fund. The study also shows that just one in five landlords said their property portfolio forms part of their pension provision. A further third of landlords are building their portfolios so that their children can benefit from the investment in the future. Over a third of landlords said their mortgages will be paid off by the time they retire and just 6% claim they will sell their properties on their retirement. What’s more, 28% of landlords plan to expand their property portfolios in 2015 and over a third of landlords use a letting agent to help 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 pointed out that potential new retiree landlords need to choose their property and location carefully. A recent report by estate agents, Chestertons shows that Birmingham has a 6.8% average gross rental yield, while Manchester has 6.4%, Sheffield has 6.3%, Leeds has 6% and Cambridge has 4.6%. ‘Anybody considering becoming a landlord should speak to local estate agents to see what the rental demand is like locally and what monthly rental income they can expect. However, if retires have no experience of the property market, they may be better considering alternative investment options,’ added Morris. Continue reading →
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