In­ter­est in buy-to-let mar­ket as pen­sion changes come in

Wilmslow Express - - HOMES -

THIS month pen­sion reg­u­la­tion changes al­low­ing peo­ple aged 55 and over to ac­cess part or all of their pen­sion pot will come into ef­fect.

At a time when stocks re­main volatile and in­ter­est rates are low, the prospect of own­ing a rental prop­erty that pro­vides a regular in­come and ap­pre­ci­ates in value has plenty of ap­peal.

Re­cent re­search has re­vealed that one in three 45 to 64-year olds 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 – or ‘sil­ver land­lords’ – have widely vary­ing rea­sons for in­vest­ing in prop­erty, with nearly 43 per cent in­ter­ested in a regular in­come; 23pc are at­tracted by the per­ceived se­cu­rity of the in­vest­ment and 17pc by the ex­pected cap­i­tal ap­pre­ci­a­tion*.

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**.

Ewan MacPhee, owner of North­wood Macclesfield, said: “We are see­ing a lot of in­ter­est from po­ten­tial ‘sil­ver land­lords’ look­ing for an ap­pro­pri­ate buy-to-let in­vest­ment.

“In re­sponse to the new leg­is­la­tion the op­por­tu­ni­ties 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-to­let is con­sid­ered an at­trac­tive al­ter­na­tive to the more tra­di­tional pen­sion funds.

“How­ever, whilst many po­ten­tial 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.

“They should be able to guide you on lo­ca­tions that are worth in­vest­ing in, find ap­pro­pri­ate prop­er­ties and give you an es­ti­mate of the rental in­come you could achieve.”

Ewan has four top tips to help those look­ing to in­vest in buy-to-let with their search:

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.