Advisers predict fall in 'pension pot' landlords

In a survey at this week's Financial Reporter Later Life Lending Roadshow, 49% of respondents said that less people will plan to fund their retirement with a buy-to-let property due to recent regulatory changes in the market such as stamp duty increases and cuts to mortgage interest tax relief.

21% of respondents believe that growing numbers will use their property portfolio to fund their retirement despite ongoing buy-to-let regulation changes. The remaining 30% expect the number of 'pension pot' landlords to remain broadly stable.

Of those who think fewer upcoming retirees will look at buy-to-let property as a way of funding their retirement plans, 56% cited the rising costs of being a landlord and 41% believed the increased regulatory burden on landlords will have the biggest impact. Just 3% believed uncertainty over house prices was having an effect on the decision of 'pension pot' landlords.

Amongst those who believe the number of retirees using buy-to-let to fund their later life will increase, the biggest majority (48%) cited the availability of better specialist advice, followed by low buy-to-let rates (30%).

When asked about retiree sentiment now compared to twelve months ago, 54% of advisers believe there is lower interest in being a landlord into retirement and just 14% are seeing increased demand.

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Rozi Jones, editor of Financial Reporter, commented: "Over the past couple of years, the industry has seen the effects of tax and regulatory changes on the buy-to-let sector including the increase in stamp duty payable on additional properties and the phased-in cuts to mortgage interest tax relief.

"It's not surprising that the negative sentiment around these changes, combined with ongoing economic and political uncertainty, has sparked lower interest in becoming a landlord into retirement.

"Although the majority of our advisers are seeing lower demand amongst 'pension pot' landlords, it's encouraging to see that a large percentage believe the availability of good quality specialist advice can help keep the sector buoyant.

"Our Buy-to-Let and Later Life Lending Roadshows provide advisers with the information, tools and contacts they need to make sure they remain ahead of the curve and can provide a holistic and comprehensive offering to their clients."