Taylor Scott International News
The majority of landlords in the UK don’t plan to take advantage of pension freedoms to invest in property, according to new research. Of those with a pension in place, just 5% are planning on withdrawing a lump sum to invest or expand their portfolio, the research from the National Landlords Association (NLA) shows. It also found that 14% of landlords would consider using a lump sum to invest in further properties, while 11% said they didn’t have enough of a pension to withdraw a lump sum at all, 7% already had other plans for withdrawing a lump sum and 19% were undecided. The research from the NLA, which asked landlords about their plans at retirement, also found that 3% plan to sell up completely, 19% have no retirement provisions in place and 25% plan to sell at least some properties. On top of this some 61% plan to live off portfolio income at retirement and 34% are undecided and will assess the market when they reach retirement age. ‘There has been a lot of talk around pensions being used to invest in buy to let since the announcement on pension freedoms was made last year. While the changes may be attractive to those considering a move into buy to let, it’s clearly not that popular an option for landlords,’ said Carolyn Uphill, chairman of the NLA. ‘Those currently in the market already have an asset to use if they want to expand, their property, and therefore, depending on circumstance, will have the means to put a lump sum towards other investments or plans; that is if they want to withdraw it at all,’ she explained. ‘The NLA offers invaluable advice, guidance and support for both existing and new landlords to help ensure the smooth and successful running of a letting business. It would be advisable for anyone considering or already planning on using a lump sum from their pension for investment in buy to let to look into how the NLA can help,’ she added. Taylor Scott International
Taylor Scott International, Taylor Scott
