81% of private landlords say their properties are their pensions

Landlords’ Panel survey reveals that four fifths of Britain’s private landlords say their properties are their pensions. Here’s how they are planning for their retirement (questions were multi-choice):

- 61% plan to live off the rental income

- 20% will sell some of the properties in their portfolio

- 5% will sell all of the properties in their portfolio

- 39% say their plans depend on the state of the market when they retire.

Many private landlords in the research view property to be a safer bet than investments such as pensions. Of the 10% of private landlords that used previously invested funds to purchase their property outright, a third said it was because they believe investing in property will produce a better return on their money (31%). Other reasons include providing an income (19%), acting as a long term investment and off-setting poor pension performance (both at 15%). 8% said property was an alternative investment. 6% believe property carries less risk than more traditional forms of investment, for example stocks and shares.

Mark Long, Director at BDRC Continental, said:

“Landlords consistently tell us that they see their property portfolio as forming a critical part of their pension provision for the future. On average, landlords intend to remain active in the rental sector for another 15 years or so, and see a combination of capital gains and rental income as underpinning their pension strategy.”