BTL sector booming with over 50's

BTL sector booming with over 50's

According to a recent report, 'Silver landlords' investing in buy-to-let property to boost their pension income have grown in popularity.

The research shows that one in ten over 55s owns a buy-to-let and that the average property, owned by the over 50s, now brings in a profit of nearly £700 a month.

The research also reveals that a third of buy-to-let owners aged over 50 became landlords within the last five years.  Nearly half of those surveyed had purchased property for the purpose of renting it out. One in seven inherited it, and one in 14 had purchased a property for a younger family member – a child or grandchild – to live in.

Many over 55s can become landlords and generate more income, through rental payments,  averaging £806 per month across England.  According to Armistead Property, investing in property for family members, or buy-to-let, can bring great returns in terms of capital growth and rental income.  

Peter Armistead of Armistead Property comments: “Property can be a wise investment for the over 50s.  The buy-to-let market conditions are very good at the moment with rising rents, a shortage of properties and increased tenant demand.  Add to this capital asset growth as property prices continue to soar in many parts of the UK, it easy to see why buy-to-let is so attractive.


Manchester, where I have successfully invested in BTL property, is a great place for investors because of the excellent return on investment.  An average residential property in the City is just £155,000, while a flat in a good area, costs as little as £120,000.  It’s not surprising that many investors, especially from the South, are targeting Manchester and are reaping the rewards.  

A property in Manchester can provide a 5% minimum cash rental yield and a typical 12% total cash yield, including 7% capital appreciation. Demand for rental accommodation is strong and by comparison with other regions and housing is cheaper.

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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