Older landlords are investing in buy-to-let properties at a higher rate than ever before, according to new research from Paragon Bank.
Older landlords are investing in buy-to-let properties at a higher rate than ever before, according to new research from Paragon Bank. It found that rental acquisitions by those aged 60 to 64 increased by more than half following the re-opening of the housing market after the pandemic.
The 52% rise in the number of buy-to-let house purchases by later life landlords was the biggest percentage increase across age groups, according to the analysis of industry data by the bank.
Factors contributing to the spike are thought to include low savings rates, encouraging people to look elsewhere for retirement security. Richard Rowntree, Paragon Bank Managing Director, said: “The pandemic may have also led to an increase in people around this age deciding to either take redundancy or early retirement, which would have given them potential access to a lump sum of money to invest, or they are simply experienced landlords who took advantage of the stamp duty holiday to lower their purchasing costs. Of course, sadly, inheritance can also result in a one-off cash boost.”
The second highest percentage increase was among landlords aged 40 to 44 at 49%, followed by 55 to 59-year-olds (45%). The smallest increase was among the over 65s at 26%.
However, older landlords are still a small percentage of the buy-to-let market, with this group representing just 5% purchasers.
According to Richard Rowntree: “It was also encouraging to see the majority of purchases in terms of absolute numbers being made by those aged between 35 and 50. This suggests that there’s a strong pipeline of younger landlords growing portfolios.”
Read more about this story on the Property Reporter website.