Nearly half of buy-to-let investors in the UK are so-called pension pot landlords, according to the latest report from Your Move.
The estate agency network’s latest Landlord Survey defines pension pot landlords as those who are over the age of 45 and view their portfolio as a long-term retirement investment.
Over four in ten property owners in the buy-to-let sector class themselves as pension pot landlords, with almost a quarter (23%) of this group having been investors for 15 years or more.
Your Move surveyed 1,071 landlords to learn more about their portfolios, behaviours, and attitudes towards tenants, letting agents and the lettings sector.
Accidental landlords – those who were not planning on becoming landlords – were the second most common type of investor (29%), followed closely by professional landlords (20%).
The survey found that accidental landlords are most likely female and under the age of 45, who are often thrust into the market through inheritance or changes in their personal circumstances.
Professional landlords, on the other hand, tend to be male, over 45-years-old and consider being a landlord as a job or career.
The findings also show that pension pot landlords are more likely than the other groups to live close to their rental properties, with 41% living within 1.5 miles.
Furthermore, nearly three in ten (29%) pension pot landlords see their properties as a business, with over half (53%) investing in more than one property.
However, even though these landlords may be more investment minded, Your Move revealed that pension pot landlords are also more likely than the other groups to build a personal rapport with their tenants and want tenants who will protect their investment.
In fact, 18% said that they like to meet or talk to new tenants before signing a contract, which was the highest proportion of any group. More than half (53%) also felt that it was important that tenants view the property as their own home.
Martyn Alderton, the National Lettings Director of Your Move, comments on the findings: “Our research suggests that the private rental sector is still seen to offer significant opportunities, providing many landlords with a source of income and funding into retirement. It’s also clear that pension pot landlords are keen to build a personal rapport with tenants who will look after their investment.
“As an industry, it’s increasingly important that we continue to support these ties, providing long-term benefits to tenants looking for a property to call their home and also for landlords looking for ways to fund their retirement.”