Landlords using property to supplement pensions
05 March 2004
More than a third of buy-to-let investors opted to invest in property in order to supplement their pension, according to a new report.
Research carried out by the Mortgage Trust found that more than a third (35 per cent) of buy-to-let landlords were using their investment to fund their retirement.
The survey also revealed that 41 per cent of buy-to-let owners had been landlords for more than five years, suggesting that many were investing for the long term.
Austin Jelfs, head of sales and marketing at Mortgage Trust, said: "With the recent government proposal to allow individuals to hold residential property in their pension fund from April 2005, more and more investors are likely to recognise the advantages of owning buy-to-let property to help secure their retirement."
"With the risks inherent in an equity-based investment many individuals are looking to diversify their portfolios and spread their pension assets. Rental property is seen by many as a tangible investment that can provide them with a significant return in the long term," he added.
The survey also showed that 21 per cent of buy-to-let investors thought they were getting a good rate of return on their provision, while 14 per cent expected house prices to rise and 13 per cent saw investing in property as a 'safe' investment.