It’s been predicted by some experts that the change in pension regulations that came into play on April 6th will mean as many as a third of over-55s looking to make an investment in property as a way to supplement their income.
According to Property Let By Us, this could become increasingly true as the years roll by, with a growing number of people across the UK now seeing their property investment as their main pension.
It said that more than a third of people who own buy-to-let properties at the moment believe they will have been able to pay off their mortgage on the investment by the time they have retired. At this point, though, only six per cent intend to sell the property on, showing that for the vast majority, the appeal of holding onto the rental homes to give them a steady income is now growing.
In addition to this, some 70 per cent of younger landlords surveyed said their investment in private rental homes was their only pension saving, meaning people are putting a lot of their weight behind the market at the present time.
These statistics highlight the fact that a growing number of people in the UK are looking toward property investment a s all or part of their retirement investing strategy
“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.
The company said for anyone looking to achieve success in the long term with regards to buy-to-let, the key is to make sure they are buying in the right places, where rental yields are favourable.
For most landlords, the typical income will sit somewhere between a five and six per cent return. However, buying in the right areas and getting the right kinds of property can improve this. Property Let By Us reports that at the moment, Birmingham, Manchester and Sheffield offer some of the highest returns, with 6.8 per cent, 6.4 per cent and 6.3 per cent on average respectively.
These statistics highlight