So-called Pension Pot landlords, who are aged over 45 and view their portfolio of properties as a long-term retirement investment, account for four in ten property owners in the sector according to Your Move.
And a quarter of this group of landlords has been investing their money in this way for 15 years or more.
Accidental landlords, who have got into buy-to-let without expecting it either through benefiting from an inheritance or changes in their personal circumstances, were the next most common.
They make up 29% of the sector and they are most likely to be women and under the age of 45, according to Your Move’s survey.
Professional landlords, who tend to me male and over 45 years old and consider being a landlord as a job or a career, make up 20% of the sector.
Martyn Alderton, national lettings director at Your Move, said: “Our research suggests the private rental sector is still seen to offer significant opportunities, providing many landlords with a source of income and funding into retirement.
“It’s also clear that ‘Pension Pot’ landlords are keen to build a personal rapport with tenants who will look after their investment.
“As an industry, it’s 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 to fund their retirement.”
Rapport with tenants
According to the research, Pension Pot landlords are most likely to build a personal rapport with their tenants, according to Your Move. Many said they like to meet or talk to new tenants before signing a contract. Over half felt it was important tenants viewed their property as their own home.
They are also the most likely to live close to their rental properties than accidental or professional landlords. The research revealed, 41% lived within five miles of their buy-to-let property.
What’s more, nearly 30% of Pension Pot landlords view their properties as a business, with over half investing in more than one property.
This is what makes me mad about the tax changes that penalize the individual landlords who are mostly just trying to fund their retirement so they are not a burden on the state. Yet the large professional landlords just set up a company and still get tax relief.
Pensions now are worthless but the Government seems intent on making it harder and harder to find a cost effective alternative.
The tax changes were not benefiting landlords of tenants as we had to reluctantly increase rent but this still does not cover the additional tax. We both lose!