Recent research has unearthed that one in ten over 55’s own a buy-to-let, and this is only set to grow in popularity, according to a Saga Landlord Insurance survey.
‘Granlords’ are using buy-to-let to boost their pension income, with the average property owned by the over 50’s demographic attracting a profit of nearly £700 a month.
This is a recent shift, with a third of buy-to-let owners becoming landlords in the last five years, with half of those surveyed purchasing the property solely to let it out.
One in seven buy-to-let owners have inherited the property, whilst one in 14 purchased the property for a family member such as a child or grandchild, it has been revealed.
Manchester is a particular popular area to invest in, and can provide a 5% minimum cash rental yield and a typical 12% total cash yield, including 7% capital appreciation.
Peter Armistead of Armistead property commented on the increase in older buy-to-let owners: “The buy-to-let market conditions are very good at the moment with rising rents, a shortage of properties and increased tenant demand. Add to this capital asset growth as property prices continue to soar in many parts of the UK, it is easy to see why buy-to-let is so attractive.”