New analysis from buy-to-let broker Commercial Trust has highlighted the appeal of London and the South East for investors aged 50 and over.
For the full calendar years 2015 to 2017, 38% of all completed buy-to-let transactions from the over-50s were in London and the South East.
The South East (19.14%) was slightly ahead of London (18.95%) for overall market share for this age group over the three year period. This may be down to the greater consistency seen in the South East (where the number of house purchases were sustained during 2017), while the capital witnessed a sharp decline in purchase activity.
The third most popular area for investment over the three year period was East Anglia (12.20%), with the South West not far behind (11.07%).
Commercial Trust’s findings suggest that the pull of London and the South East to would-be investors remains strong, especially to those who have the available capital to bankroll a purchase in these (typically more expensive) regions.
What’s more, a study from Retirement Advantage in 2017 found that one in ten people aged 50 or over is likely to invest in property after retiring. Earlier this month, too, Savills released a report showing that approximately three quarters of the UK’s housing wealth – equivalent to £2.8 trillion of housing equity – was owned by the over-50s.
The greater pension freedoms now enjoyed by the over 50s, the unpredictability of annuity rates and the fact that many lenders are willing to accept pension income as a source of affordability, have all made property investment an increasingly popular choice for those looking for alternative ways to fund their retirement.
Clever investment in buy-to-let property can offer the prospect of strong capital growth, while a steady stream of rental income could help to bolster retirement income.