"While younger landlords are reshaping the market, agencies should not underestimate the resilience and value of older investors"
- Dr Neil Cobbold - Reapit
The current exemption from National Insurance for those of State Pension age could encourage older landlords to invest in buy-to-let properties, potentially reshaping the rental market.
While recent coverage has highlighted millennials driving new buy-to-let incorporations, global PropTech leader Reapit suggests that older investors could represent the most significant post-Budget opportunity for sales and letting agencies. These landlords may benefit from comparatively higher yields while expanding their portfolios.
Under proposals from the 2025 Budget, landlords could become liable for a National Insurance charge on rental income. However, those above the State Pension age remain exempt, creating a post-tax yield advantage for retirees.
“While younger landlords are reshaping the market, agencies should not underestimate the resilience and value of older investors,” said Dr Neil Cobbold, commercial director at Reapit (pictured). “If National Insurance is levied on all rental income but the current exemption for those over State Pension age holds, these investors could see higher net yields than their younger counterparts, making property investment more attractive to retirees. It will be for agencies across the country to sell this potential opportunity to their older landlords in the face of regulatory reform.”
Older landlords could also present a notable opportunity for agents. The English Private Landlord Survey 2024 found that landlords with larger portfolios are more likely to use an agent and to be nearing retirement. Specifically, 77% of landlords with five or more properties were aged 55 or over, and these large-scale landlords were more likely to rely on a fully managed agent service.
“For agents, it could represent a valuable opportunity,” Cobbold added. “Older portfolio landlords who rely on experienced agents to professionally manage their properties can trust those agents to guide them in investing beyond their local area in locations that deliver strong rental yields.
“Agencies with the widest reach and the technology to combine sales and lettings on a single platform are best placed to respond. Integrated operations give these agents the insight to support every investor, from millennial first-timers to pension-age portfolio holders, helping them identify the right sales opportunities that can deliver the best rental yields across the country, rather than just the landlord’s local area.”
