Property or Pension?
There is little doubt that fewer people these days have pensions in place to provide an income in retirement. However, more and more people are relying on property as a pension.
Buying Buy-to-Let property provides two potential financial returns:
- Short term finance from rental income
- Long term financial gain from increased property value
With around two-thirds of landlords saying they are in the Buy-to-Let market for at least 10 years it seems it is predominately the increased property value over time that people relying on as a pension.
Property as a pension stats
A report from Charcol found that:
- Around half of all landlords are currently buying their property on a mortgage
- Two-thirds of investors are in the market for at least ten years, and three quarters (75%) of existing landlords plan to rent out more property within the next decade
- 36% of UK buy-to-let investors are female, and one in eight is aged under 35
- Four out of ten investors live in London or the South East, while almost a third live in the north of England (22%) or Scotland (9%)