Landlords expect to use portfolio to boost post-retirement finances

Properties to rent are increasingly being considered by landlords as a way to boost their pension, new research has revealed.

According to a survey by the National Landlord’s Association (NLA), a huge 81 per cent of landlords view their property portfolio as an essential part of their “post-retirement income”, supplementing any pension funds, This Is Cornwall reports.

The survey emphasised the financial benefits of renting out properties at a time when many landlords were found to be pessimistic about the UK economy. Many of the landlords polled expected to rely totally on the earnings obtained via renting once they stopped working.

Commenting on the findings, which coincide with news that the number of people saving towards a pension has dropped to just 38 per cent, was David Salusbury, NLA chairman. He said that because economic confidence was low, many people were looking for alternate ways to provide for their future.

“Private residential property can be a sound long-term investment for those planning their retirement. But potential landlords must realise that letting a property is a lot more complicated than contributing to a pension,” he said via London Housing News.

Mr Salusbury went on to highlight that becoming a landlord was like “starting any other small business” and that to successfully enter the market, having a sound business plan would be essential.

Additionally, prospective landlords would need a thorough understanding of the rules and regulations surrounding the letting of a property, plus an appreciation of the required responsibility to any tenants.”