More than three quarters of Britain’s private landlords say that their properties are their pensions, according to the latest research from BDRC Continental’s independent Landlords’ Panel survey.
Given a multiples choice question on how they were planning for their retirement, 61 per cent of landlords said they were planning to live off the rental income, 20 per cent intend to sell some of the properties in their portfolio, while 5 per cent will sell all of the properties. For 39 per cent their plans will 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 per cent of private landlords that used previously invested funds to purchase their property outright, a third (31 per cent) said it was because they believe investing in property will produce a better return on their money.
Other reasons include providing an income (19 per cent), acting as a long term investment and off-setting poor pension performance (both at 15 per cent).
Property was an alternative investment for 8 per cent, 6 per cent believe a property carries less risk than more traditional forms of investment like 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.”
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