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Property is the pension for Generation Landlord

From Property Talk Live on June 3, 2014

Figures from the latest Rent Check report, Generation Landlord, produced by Allsop LLP and BDRC Continental, reveal that 78 per cent of existing landlords consider their investment property as their pension pot.

The survey, which measured the actual rents agreed by 2,203 landlords who are members of the National Landlord Association (NLA), has highlighted the private rented sector as a viable long term investment, thanks to the combination of stable rents, increased income security, capital gains and long average tenancies (2.6 years).

Following Government intervention which allows people to access lump sums from their pensions, investment in property is expected to rise as over 50s seek alternative ways to secure their future. Generation Landlord reveals that property is already a popular investment for UK pension planners, with almost eight in ten existing landlords considering their property their pension.

Mark Long, director of BDRC said: “Property as a pension takes on a whole new dynamic given the recent relaxation of maturity options, and it will be interesting to see how this plays out between established, experienced landlords and first-time investors looking to leverage bricks and mortar in later life.”

UK average rents have increased by 4.2% in the year to March 2014, with 94 per cent of landlords having seen rents rise or stay the same. 88% of landlords achieved at least their rental asking price.

On average, landlords outside of London take home £4,493 per annum per property, losing 26% of their headline rent to expenses incurred in the running and managing of their properties.

Paul Winstanley, partner at Allsop LLP said: “The Rent Check clearly demonstrates that in the vast majority of regions in England and Wales, we are not seeing rapidly escalating rents. Landlords prioritise retaining good tenants and avoiding costly void periods over and above pushing for higher rents.”

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Source: Property Talk Live