Around 140,000 landlords retired in 2022, predominantly these were older investors, who were part of the early buy-to-let mortgages launched in 1996. They leave behind a gap which is at risk of not being filled. What does this mean for the next generation of landlords?
Currently, there are around one million landlords above the age of 65, with an average of 96,000 landlords turning 65 each year in the UK. With many retiring, there is an opportunity for new landlords to enter the buy-to-let market. Being a first-time landlord in the UK can seem like a daunting task, but there are many positives to owning a rental property:
1. Steady Income Stream
As a landlord, you’ll receive monthly rental income from your tenants, which can provide you with a reliable source of income. This income can be particularly helpful if you’re looking to supplement your primary income or build wealth over time.
2. Property Appreciation
Property values have been steadily increasing in recent years, and this trend is expected to continue. As a landlord, you’ll be able to benefit by potentially selling your property for a profit down the line. Additionally, property appreciation can increase the value of your rental property and allow you to charge higher rent prices.
3. Control over your Investment
Owning a rental property can give you more control over your investment compared to other options, such as stocks or bonds. You can make decisions about how to manage your property, including setting rent prices, selecting tenants, and developing the property.
From generating a steady income stream to enjoying potential property appreciation, owning a rental property can be a smart investment decision.
If you are in a strong financial position to afford or consider entering the buy-to-let market, becoming a landlord could be a successful investment to make. However, there are risks involved and it’s important to understand the challenges you may face.
For more information, contact us today and we can support you with your buy-to-let mortgage.