Bricks and mortar are the foundations of retirement savings for many as they rely on rental income to finance their later years.
Three-quarters of landlords regard their property portfolios and the rents generated by tenants as their pension, while a third regard their property investments as a crucial part of planning their finances for when they give up work.
The revelation came in a report from major buy to let lender BM Solutions.
Letting property is also becoming more popular with landlords who want to supplement their monthly incomes. Around 43% of property investors admitted they dip into rents to help with their own day-to-day living costs.
The study also heralded that landlords are returning to the heady confidence they had in buy to let when the credit crunch struck.
Falling yields
This is despite falling yields as high prices creep back to their 2007 peak while rents stick.
The research highlighted that the highest demand and rents were in London and the South East, but the best yields were in the North East.
Yorkshire and Humberside landlords face the lowest demand from tenants and the lowest yields on their investments.
Another report also disclosed buy to let is so popular as an alternative retirement investment, that property consultants Savills expect the market to grow by another 25% or a million homes in the next five years.
The buy to let market already comprises around 4 million homes and has nudged ahead of social housing as the second most popular tenancy behind buying a home.
Tenancy changes
That extra million homes will push buy to let from 17% of the housing stock to more than a fifth.
The firm claims the main reason tenants rent homes is because they do not have the means to save a deposit to buy a property.
The research also points out that this is not only a problem for younger buyers, but an increasing problem for renters over 45 years old who are already long term tenants and expect to remain so into their retirement.
“If buy to let is going to work, tenants are going to demand some changes,” said a spokesman for the firm. “Better quality accommodation located near transport is essential in cities.
“Many tenants are looking for more security that could be provided by longer tenancy agreements and properties could be better managed in the event of complaints and maintenance.”
