Pension Pot Investments Make Up Large Portion of Buy to Let Sector

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Almost half of the UK’s buy to let investors are ‘pension pot’ investors using their investment property as a pension, according to new analysis.

The most recent annual landlord survey from Your Move found that 23 per cent of so-called ‘pension pot’ landlords have been investing in the UK buy to let sector for over 15 years. The survey defines a pension pot landlord as those who are over the age of 45 with a portfolio which is used as a long-term retirement investment. It found that over four in 10 owners in the buy to let sector are using the investment as a pension.

Your Move spoke to 1,071 buy to let landlords to learn more about their portfolios, behaviours and attitudes towards tenants as well as letting agents and the lettings market.

The survey uncovered that 29 per cent are accidental landlords. These are investors who were not expecting to be landlords. A further 20 per cent described themselves as professional landlords. It was also noted that accidental landlords are more likely to be female and under the age of 45. In contrast, those who are landlords as their professional career are more likely to be male and over 45.

Pension Pot landlords are generally likely to live close to their rental properties than either accidental or professional landlords. 41 per cent live within one to five miles of the property.

29 per cent of pension pot landlords see their properties as a business, with 53 per cent investing in more than one property. In addition, pension pot landlords tend to be more in touch with their tenants, and are more likely to build a personal rapport.

However, even though these landlords may be more investment minded, the 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.

National lettings director at Your Move, Martyn Alderton, 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.’

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