Pensions  

One in four landlords to invest pension in property

One in four landlords to invest pension in property

A quarter of landlords would consider using a pensions lump sum to invest in property, according to the latest BM Solutions buy-to-let survey.

One in four landlords would consider using a lump sum from their pension to invest in property, with a further 24 per cent undecided, the quarterly BM Solutions and BDRC Continental Landlord Panel revealed.

The quarterly poll 1,070 National Landlords Association members showed while 77 per cent of landlords view their property portfolio as part of their pension provision, 38 per cent are not planning to withdraw a lump sum from their pension to invest in property or don’t have enough in their pension to do so.

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This increases to 48 per cent for landlords with larger portfolios of 20 plus properties.

Phil Rickards, head of BM Solutions, said: “We expected to see an immediate increase in interest in buy-to-let after the rule changes allowing access to pension lump sums, but did not believe there would be a stampede and this has proved to be the case.

“Buy-to-let is a serious investment of time and money and while good landlords can be very successful, we are not seeing huge numbers of existing landlords shift their pension savings into property.”

Just under half (46 per cent) of landlords polled reported seeing rents increase in the areas where they let over the last 12 months, with just 5 per cent stating they have noticed rents falling.

The average buy-to-let portfolio is now worth £1.2m, and generates a gross rental income of £53,000 a year.

emma.hughes@ft.com