Taylor Scott International News
Almost three quarters of pensioners in the UK who have an investment property said they would struggle to make ends meet if they didn’t have the income from their buy to let, new research shows. Overall 72% would struggle and 81% of those aged over 65 said that their properties provide an important, even vital, boost to their retirement income, according to a poll carried out by Responsible Equity Release. The poll also found that 92% are worried about the changes to mortgage interest tax relief and the impact on the profit they make from their investment property. The buy to let tax changes coming into force have left many pensioner landlords considering whether it’s worth holding onto their property and 41% said although their buy to let property was a valuable income generator, they are now thinking seriously about selling it. ‘For many pensioners, having a buy to let property has been a life saver in this low interest environment. While their savings have languished, earning very little interest, and pension income has been hit hard by falling share prices, property income has remained strong,’ said Steve Wilkie, managing director at Responsible Equity Release. ‘Without the income boost from their buy to let, many would really be struggling to make ends meet. But the Chancellor has yet again ignored UK’s retirees when he announced changes to the way buy to let would be taxed,’ he pointed out. ‘George Osborne was so focused on taxing the rich, he forgot that a new tax on buy to let won’t just hit the wealthy, it will also hit those honest, hardworking people, who may have a single buy to let property and were just hoping it would earn them a little extra income in retirement,’ he added. Taylor Scott International
Taylor Scott International, Taylor Scott
