Landlords’ Panel survey reveals that four fifths of Britain’s private landlords say their properties are their pensions. Here’s how they are planning for their retirement (questions were multi-choice):
- 61% plan to live off the rental income
- 20% will sell some of the properties in their portfolio
- 5% will sell all of the properties in their portfolio
- 39% say their plans depend on the state of the market when they retire.
Many private landlords in the research view property to be a safer bet than investments such as pensions. Of the 10% of private landlords that used previously invested funds to purchase their property outright, a third said it was because they believe investing in property will produce a better return on their money (31%). Other reasons include providing an income (19%), acting as a long term investment and off-setting poor pension performance (both at 15%). 8% said property was an alternative investment. 6% believe property carries less risk than more traditional forms of investment, for example stocks and shares.
Mark Long, Director at BDRC Continental, said:
“Landlords consistently tell us that they see their property portfolio as forming a critical part of their pension provision for the future. On average, landlords intend to remain active in the rental sector for another 15 years or so, and see a combination of capital gains and rental income as underpinning their pension strategy.”
