Recent research from Your Move has revealed that nearly half of all UK buy-to-let landlords are ‘Pension Pot’ landlords.
‘Pension Pot’ landlords – according to Your Move’s annual Landlord Survey – are landlords who are over the age of 45 and view their portfolio as a long-term retirement investment.
Over four in 10 property owners in the buy-to-let sector class themselves as ‘Pension Pot’ landlords, with 23% of this group having been a landlord for 15 years or more.
The estate agent network surveyed 1,071 buy-to-let landlords to learn more about their attitudes and behaviours towards tenants, letting agents and the lettings market.
It found that ‘Accidental’ landlords were the second most common type of landlord (29%). These types of landlords are most likely to be female and under the age of 45, often thrust into the market through inheritance or changes in their personal circumstances.
‘Professional’ landlords followed close behind as the third most common landlord type (20%). Most landlords of this type tend to be male, over 45 years old and considered being a landlord as a job or career.
The findings also showed that ‘Pension Pot’ landlords are more likely to live close to their rental properties than either ‘Accidental’ or ‘Professional’ landlords, with 41% living within 1-5 miles of the property.
Additionally, 29% of ‘Pension Pot’ landlords see their properties as a business, with 53% investing in more than one property.
However, Your Move’s survey found that while these landlords may be more ‘investment minded’, they are also more likely than other groups to build a personal rapport with tenants and want tenants who will protect their investment.
In fact, 18% said they like to meet or talk to new tenants before signing a contract, recording the highest proportion of any group. Over half (53%) felt it was important that tenants view the property as their own home.
Martyn Alderton, national lettings director at Your Move, commented: “Our research suggests that the private rental sector is still seen to offer significant opportunities, providing many landlords with a source of income and funding into retirement.”
“It’s also clear that ‘Pension Pot’ landlords are keen to build a personal rapport with tenants who will look after their investment.”
He added that as an industry, supporting ties such as these will provide long-term benefits to tenants looking for a property to call their home, and also for landlords looking for ways to fund their retirement.