It is no surprise to Enable that older people are always looking for different options to fund their retirements. Following the reopening of the housing markets, buy-to-let purchases made by older landlords nearing retirement have jumped by more than half according to data from Paragon Bank.
They say, “there was a 52% rise in BTL sales made to landlords aged between 60 and 64 in the year to the end of June compared to the same period the year before, following the introduction of the stamp duty holiday last summer.” This was a rise that was larger than for any other age bracket.
Landlords aged between 40 and 44 recorded the second-highest percentage increase during the pandemic at 49%. The third-highest increase in BTL house sales in the year to June was among 55 to 59-year-olds, 45%.
“There was a distinct spike in the number of purchases made by those nearing retirement age once the housing market reopened in May 2020.” Said Paragon Bank managing director Richard Rowntree, he added “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.
If you are looking to invest in property Enables IFAs in Bishops Stortford can help you look at your Buy-to-let mortgage options and help you find the best deal for you.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage