A new breed of ‘Silver landlord’ has arrived

Thanks to changes in pension regulations coming into effect in April people aged 55 and over will be able to access part or all of their pension pot.  At a time when stocks remain volatile and interest rates are low, the prospect of owning a rental property that provides both a regular income and appreciates in value has much appeal. It is no surprise that the upcoming changes in legislation are encouraging a new breed of landlord. Recent research revealed that 1 in 3 people aged 45 to 64 with a pension would consider using some or all of their pension to fund a buy to let property as an alternative to a more traditional pension fund. These potential landlords – popularly labelled as ‘silver landlords’ have quite widely varying reasons for investing in property with nearly 43% interested in a regular income. Some 23% are attracted by the perceived security of the investment and 17% by the expected capital appreciation[i] The UK private rented sector (PRS) has seen significant growth in the last two decades, having doubled since 1996. There are now an estimated two million private landlords in the UK who own and rent out 4.4 million homes – that’s almost one in five homes across the country.[ii] I have been seeing a lot of interest from potential silver landlords looking for an appropriate Buy to Let investment. In response to the new legislation the opportunity for those approaching retirement to invest in property are opening up in a way that has never been possible before. Encouraged by both steady gains in capital appreciation of property and increasing tenant demand, it’s easy to understand why Buy to Let is considered an attractive alternative to the more traditional pension funds. However, whilst many potential silver landlords will appreciate the basic concept of investing in bricks and mortar, it is vital to understand that any property purchased for rental purposes needs to be treated as the investment it is. The key to successfully letting out a property is to find the tenant demand first and then the property that will meet that demand. This is where the expertise of an experienced, knowledgeable local agent is invaluable.  So why not pop in and see me at our office on the Wellingborough Road and I’ll be happy to look over any properties you are considering…… guide you on the locations that are worth investing in, and give you an estimate of the rental income you could achieve. [i] 2013 / 2014 English Housing Survey, March 2015 [ii] Direct Line for Business (DL4B) survey, Jan 2015