Half Of Landlords See Buy To Let As Property Pensions

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New buy to let landlord surveys have revealed that half of Britain’s landlords regard their properties as a pension – and their portfolios are worth more than £1.5 million.

Data from mortgage lender Paragon shows the average portfolio has 12 rental homes

Meanwhile, letting agent Your Move discloses that half of landlords are aged over 45 and see their portfolios as a long-term investment for their retirement.

Landlord lender Paragon says portfolio values have reached a record high of an average £1.7 million a decade after plunging 16% to £1.35 million from a pre-financial crisis peak of £1.6 million.

But, says the lender, landlords are not optimistic about the future of their property businesses with 21% ready to sell some homes, compared with just 9% looking to buy more.

Booking.com

Unprecedented changes

“Unprecedented tax and regulatory changes have clearly taken their toll,” said Paragon director of mortgages John Heron.

“Not only are landlords braced for the initial impact of the phased removal of mortgage interest tax relief in their next tax bill, they also remain on guard for any further, unwelcome changes as we head towards the Budget.”

Although Paragon sees buy to let as a business and landlords as property professionals, the study from Your Move shows landlords do not necessarily agree.

When asked, around 30% viewed their property as a business, even though 53% owned more than one rental home.

Funding for retirement

Martyn Alderton, national lettings director at Your Move, said the research suggested buy to let appeals to landlords as an income stream and funding for retirement.

“It is also clear that ‘Pension Pot’ landlords are keen to build a personal rapport with tenants who will look after their investment,” he said.

“As an industry, it is increasingly important that we continue to support these ties, providing long-term benefits to tenants looking for a property to call their home and also for landlords looking for ways to fund their retirement.”

The Your Move survey found that 41% of landlords with a property pension tended to live within five miles of the home that they were renting out.

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