With growing discontent and uncertainty surrounding the pensions situation, and the continued growth of properties as an investment choice, Saga indicated that 24 per cent more over 50s expected to become landlords over the next 12 months, compared to last years findings.
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With recent Council of Mortgage Lenders research indicating that the average first-time buyer is over the age of 30, the research by Saga highlighted that those in the 50 and over age bracket would find it easier to make the step towards becoming a property investor.
However, Saga urged any potential property investors to ensure that they take adequate tax advice before taking any firm decision.
Commenting on the findings, Andrew Goodsell, chief executive at Saga Group Ltd, said: “It is no surprise that over 50s own the majority of second and rental properties in the UK. However, as more and more decide to follow this route, it is important that they understand the tax implications that rental income will have.”
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Andy Young, chief executive officer at TBMC, was unsurprised by the findings and said the popularity of the BTL market stemmed from the success of bricks and mortar as an asset class.
He explained: ‘It comes as no surprise that more over 50s are looking to enter the BTL market as a way of saving for their retirement. BTL property investment has been one of the best performing asset classes in recent years with a proven track record of strength and continued growth.”
Young added that the investment opportunities within the BTL market meant that increasing numbers of people would seek to enter the sector in the coming months and years.
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He explained: “Investing in the BTL market really does provide a viable alternative to more traditional investments such as pensions, and perhaps offers a greater degree of control to aspiring landlords. BTL investors can choose the location and type of property and provided it is well maintained then its value is very likely to increase in the current climate of growth.”
