You are here: Home - News -

Later life buy-to-let purchases increase by over half

by:
  • 13/10/2021
  • 0
Later life buy-to-let purchases increase by over half
Buy-to-let (BTL) purchases by 60 to 64-year-olds increased by 52 per cent in the 12 months to June this year, the largest increase of any age group.

 

According to figures from Paragon, new BTL purchases by this group made up 5.08 per cent of total BTL purchases in the 12 months up to June, which is up from 4.72 per cent in the same period the year before.

This was the largest increase of any age group, with BTL purchases from landlords aged between 40 and 44 pegged at 49 per cent, which was followed by those aged 55 to 59 at 45 per cent.

The weakest growth was reported in the 65 plus category, which grew by 26 per cent.

Purchases from the 60 to 64-year-old bracket is the second smallest category after 65 plus which made up 3.38 per cent of total BTL purchases, but the increase is significant.

Richard Rowntree (pictured), Paragon Bank’s managing director, said: “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.”

He added: “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.”

The research also showed that BTL purchases grew in all age groups by more than a third, barring the 65 plus category.

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.”

There are 0 Comment(s)

You may also be interested in