Many people invest in property, with “bricks and mortar” seen as a safe investment. New research now suggests that almost half of those who have invested in a buy to let property see it as their primary retirement investment.
Your Move, the estate agent behind the research, refers to these landlords as ‘pension pot landlords’ as their primary aim is to use their portfolio of one of more properties as their source of income for their retirement, and 45% of all BTL landlords will fall into this category.
Those that have not planned for any other income – no other pension, for example – will be looking with interest at house prices, but won’t be pleased to see the data from the Halifax building society, which suggests that last month, property prices dropped at the sharpest rate since April, which equates to around £4,000 on average. That has a direct impact on those relying on that for their livelihood in retirement.
According to Pension Pot landlords themselves though, only three in every ten consider themselves to be professionals and earning a living from their property.
Another new category of landlord is those who find themselves in the position of having a property to let by accident. Those most likely to be termed “accidental” landlords are women aged 45 and under, who might inherit property or experience a change in their circumstances.
How the situation affects these landlords has huge regional variations, with those in Scotland’s key cities of Glasgow and Edinburgh finding themselves in fast-paced markets and London at the other end of the scale.
A third group is those who make a living from their property and consider it to be their full-time occupation. This group tends to be male, and aged 45 and over.
If you think a Buy To Let investment might be for you, whether or not as a pension pot, read the advice from This Is Money and then talk to a specialist local agency about the area for expert advice in your region. For letting agents Bath is well served and companies like Pritchards (https://www.pritchards-bath.co.uk), who are willing to answer queries, can be invaluable in your planning.
Seek independent advice before committing to a decision, as it is a serious financial investment.