Buy-to-let property main pension stream for more UK landlords

Buy-to-let property main pension stream for more UK landlords

With pension reforms expected to create a new wave of investors, it would appear that property is already the main pension fund for many existing landlords.

Summary:

  • New research has found that 70% of younger landlords regard their buy-to-let property as their only pension fund
  • 28% of existing landlords plan to expand their property portfolio in 2015
  • Earlier this month, new pension freedoms came into place, and experts forecast that one in six over 55’s will use some or all of their savings to fund a buy-to-let property investment

As the UK property market could be set to see a new generation of landlords following this month’s pension reforms, it would appear that existing buy-to-let investors are already planning on using their property investments as their nest egg for their retirement.

A study by letting agent Property Let By Us has found that 70% of younger landlords regard their buy-to-let investment as their only pension fund, with just one in five landlords stating that their property forms only a part of their pension provision.

28% of landlords plan to expand their property portfolio in 2015, whilst it’s also clear that existing investments are planning to be used for future generations, too. One third of landlords intend to add to their portfolio so that their children can benefit from their investment in the future.

Jane Morris, Managing Director of Property Let By Us, believes that it’s unsurprising more people are purchasing rental property, with mortgage rates at an all-time low and rising rental rates across the UK fuelling the attractiveness of the market, adding that “many landlords see their property portfolios as a long-term investment and a major part of their pension planning”.

April 2015 marked the start of new pension reforms in the UK, with savers over 55 now having the opportunity to access some or all of their funds with which to invest in an asset that could generate better monthly returns for their retirement than the traditional annuity.

Around one in six savers affected by the changes are predicted to use their savings to make a buy-to-let property investment.

pensions 2015 buy-to-let

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