‘Later Life’ landlords swooping in post lockdown

‘Later Life’ landlords swooping in post lockdown

10:25 AM, 15th October 2021, About 2 years ago 5

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The number of buy-to-let acquisitions made by later life landlords nearing retirement age increased by more than half following the re-opening of the housing market, more than any other age bracket, Paragon Bank analysis has revealed.

There was a 52% increase in the number of buy-to-let house purchases made by landlords aged between 60 and 64 in the 12 months to the end of June 2021 compared to the same period the year before.

This was the highest percentage increase of any age group, according to the analysis of industry data. However, as a proportion of the overall market, this age bracket remained the second smallest at 5.08% of buy-to-let purchases.

Richard Rowntree, Paragon Bank Managing Director, said: “There was a distinct spike in the number of purchases made by those nearing retirement age once the housing market reopened in May 2020. There could be many contributing reasons for this trend, with low returns from savings and stock market volatility being a potential factor as this demographic seeks to boost retirement income.

“The pandemic may have also led to an increase in people around this age deciding to either take redundancy or early retirement, which would have given them potential access to a lump sum of money to invest, or they are simply experienced landlords who took advantage of the Stamp Duty holiday to lower their purchasing costs. Of course, sadly, inheritance can also result in a one-off cash boost.”

Most buy-to-let lenders cater for older borrowers, including Paragon Bank, with the maximum age limit of 85 at the end of the term standard across the sector.

New buy-to-let house purchase by age of borrower

Landlords aged between 40 and 44 recorded the second highest percentage increase at 49%, whilst this group recorded the greatest increase as a proportion of overall purchases, rising from 15.2% of the market in the year to the end of June 2020 to 16% this year.

The third highest increase was amongst 55 to 59-year-olds (45%), whilst over 65s recorded the weakest increase at 26%.

Richard Rowntree added: “While there was a sharp increase in older landlords purchasing new homes, it was also encouraging to see the majority of purchases in terms of absolute numbers being made by those aged between 35 and 50. This suggests that there’s a strong pipeline of younger landlords growing portfolios.”

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Mick Roberts

12:22 PM, 15th October 2021, About 2 years ago

They don't know what they letting theirselves in for. There again, if buy right area,do up top spec & leave with an agent, may be good for them. Unless in Licensing area where they may get tortured with daftness.

Reluctant Landlord

12:41 PM, 15th October 2021, About 2 years ago

I agree Mick - if you break these stats down I bet the properties are in really nice areas and where they will pay Agents to run them.

Let's see the stats for BTL's where the new owners intend to house only UC tenants..... I bet there is no growth here!

Mick Roberts

12:43 PM, 15th October 2021, About 2 years ago

Reply to the comment left by DSR at 15/10/2021 - 12:41
Yes, We get told all the time when we sell, Ooh another Landlord bought it. Yes but u can bet he won;t be housing a Benefit tenant. They've been forgot. They can't move any more.

bob the builder

15:07 PM, 27th October 2021, About 2 years ago



11:47 AM, 28th October 2021, About 2 years ago

The graph suggests that inheritance and (early?) retirement may be factors? The 40s are getting inheritance money and wish to invest in something they think they understand better than the stock market or fancy-dan (my late mother's contempt rings down the ages!) financial advisor whiz-kid schemes? The later spike shows retirement or redundant lump sum payees and also access to pension pots?

It all goes pear shaped when woe visits as colleagues warn above. Bad: tenants, hopeless agents, horrible LAs, the taxman, add a few more gremlins. They ask why they either didn't buy Premium Bonds and waited for Ernie or blow it on the (of course never in doubt 100%) 100/1 winner of the 2.30?
Life can be a bummer, just battle on.

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