In recent years buy-to-let has gone from being the preserve of professional property developers to an investment type embraced by a broad cross-section of society and one demographic that has shown a particular interest in buy-to-let is that of the over-60s, according to a report by the Daily Mail
The article shows a dramatic rise of 58 per cent in the number of loans for rental properties according to the Council of Mortgage Lenders – and the so-called “grey pound” is a key driver.
Indeed, The Council of Mortgage Lenders is also reported as stating that in the last month alone, lending for rental properties has surged by 17 per cent.
Why the renewed interest in buy-to-let?
The Daily Mail article reports that as interest rates have been low for some time and rents continue to rise, many older savers have been prompted into becoming first time landlords in order to see a better return on their savings.
In the 12 months to July this year, rents rose 2 per cent across England and Wales – according to LSL Property Services.
Current annual returns can exceed 5 per cent – much better than the average savings account which tends to offer less than 1 per cent.
The article quotes Ray Boulger of mortgage experts John Charcoal as saying ‘Buy to let is a very attractive proposition for many savers when they sit down and do the sums.’
This interest in buy-to-let properties among the over-60s is likely to grow even further according to Ray Boulgar, who goes on to say ‘interest is only going to rise, particularly when new pension rules allow more retirees to access the cash in their retirement pots. It’s likely then that we’ll see even more investors start to look at buy to let.’
But as with all investments, caution must be exercised; potential risks and benefits must be weighed up. Click4quote.com has some useful information in our Landlord tips and guides section about what to be aware of when entering the buy to let property market. Don’t forget that good buy-to-let property insurance is a vital element of any landlord investment and Click4quote would be pleased to provide a quote either online or over the phone.