Nearly half of landlords in the UK are “pension pot” landlords, according to a landlord survey by Your Move.
The estate agent defines “pension pot” landlords as those who are over the age of 45 and view their portfolio as a long-term retirement investment.
More than four in 10 landlords class themselves as “pension pot” landlords, with nearly a quarter (23 per cent) of this group, having been a landlord for 15 years or more.
“Accidental” landlords – those who were not expecting to be landlords – were the second most common type of landlord (29 per cent), followed closely by “professional” landlords (20 per cent).
The survey also found that accidental landlords are most likely to be female and under the age of 45, often thrust into the market through inheritance or other changes in their personal circumstances. Professional landlords tend to be male, over 45-years-old, and consider being a landlord as a job or career.
The findings also showed pension pot landlords are more likely to live close to their rental properties than either accidental or professional landlords, with 41 per cent living within one to five miles of the property.
Nearly three in 10 (29 per cent) pension pot landlords see their properties as a business, with more than half (53 per cent) investing in more than one property. Your Move found these landlords are more likely than the other groups to build a personal rapport with tenants and want tenants who will protect their investment.
Your Move national lettings director Martyn Alderton says: “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.”