Latest research from Your Move has found that nearly half of all landlords in the UK buy-to-let sector are ‘pension pot’ landlords.
Your Move’s annual Landlord Survey defines ‘pension pot’ landlords as those who are over the age of 45 and view their portfolio as a long-term retirement investment. Over four in 10 property owners in the buy-to-let sector class themselves as ‘pension pot’ landlords, with 23% of this group, having been a landlord for 15 years or more.
Your Move surveyed 1,071 buy-to-let landlords to learn more about their portfolios, behaviours and attitudes towards tenants, letting agents and the lettings market. ‘Accidental’ landlords – those who were not expecting to be landlords – were the second most common type of landlord (29%), followed closely by ‘professional’ landlords (20%).The survey also revealed that ‘accidental’ landlords are most likely to be female and under the age of 45, often thrust into the market through inheritance or other changes in their personal circumstances. ‘Professional’ landlords, however, tend to be male, over 45 years old, and consider being a landlord as a job or career.
The findings also showed that ‘pension pot’ landlords are more likely to live close to their rental properties than either ‘accidental’ or ‘professional’ landlords, with 41% living within not to five miles of the property.
Furthermore, 29% of ‘pension pot’ landlords see their properties as a business, with 53% investing in more than one property. However, even though these landlords may be more ‘investment minded’, Your Move’s survey found that ‘pension pot’ landlords are also more likely than the other groups to build a personal rapport with tenants and want tenants who will protect their investment. In fact, 18% said they like to meet or talk to new tenants before signing a contract, which was the highest proportion of any group. 53% felt it was important that tenants view the property as their own home.
Martyn Alderton, national lettings director, Your Move, said: “Our research suggests that 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 for ways to fund their retirement.”