Property investments continue to be a popular pension asset

Property investments continue to be a popular pension asset – words Al Woods

A recent survey carried out by estate agents Your Move quizzed over 1,000 landlords about the state of their current pensions.
The results showed that a little under half of those asked were over the age of 45, with the majority of those asked over this demographic stating that their property investment(s) were purchased for their ´pension pot´.
Those over this age were also far more likely to live close to their rental properties. Of this group, four out of ten were living within a five-mile radius of their rental property.


Surprisingly, over half of those in this over 45 group owned more than one property, but only a quarter of this demographic saw these property investments as a business.

National lettings director at Your Move, Martyn Alderton, highlights these findings in the private rental sector as being continually appealing to prospective landlords, particularly as a means to fund retirement.

Martyn goes on to say, “as an industry, it is 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.”

This view is shared by David Hollingworth, associate director of communications at London & Country, drawing attention to the perceived importance of property investments as an important channel within their retirement portfolio.

“In the past, there has been concern that landlords would be dumping stock at the first sign of a downturn, but, in the Financial Crisis, that didn’t transpire, and people stuck with it. People were instead looking at the income they could generate from rental income.”

This statement is particularly interesting in that it draws attention to the fact that property can battle through tough economic pressures, which is particularly relevant when evaluating the current state of the economic climate in the UK.

The Telegraph drew attention to this earlier in the year, highlighting the economic benefits of investing in property over putting money into a conventional pension fund.

James Davis, founder of online letting agency Upad, whom himself has no pension fund, does instead have a portfolio of over 20 buy-to-let properties.

Based on property price growth over the last 20 years, if this growth continues at the same rate, “a property of today’s average value of £235,000 will be worth £1m by 2038”. Though ambitious, when looking at it from this perspective, an investment in property over a pension fund appears a no-brainer.

Even when assessing the worst-case scenario with no monthly profit, you have still obtained a significant capital appreciation.

Of course, this strategy not only requires a higher initial start-up, but also carries with it more drain on time resources. Ultimately it is up to you whether you opt to invest in a buy-to-let retirement property, but if the figures above are anything to go by, it would appear a wise investment.

Looking for an alternative investment opportunity? Check out this recent hotel room investment guide.




You May Also Like

bathroom renovation

Why you should start your bathroom renovation with the bath

Why you should start your bathroom renovation with the bath – words Al Woods ...

Okinawa region

Japan’s Okinawa region – An ancient & spiritual land

Japan’s Okinawa region – An ancient & spiritual land – words Alexa Wang Japan’s ...

most expensive private jets

The 5 most expensive private jets in the world

words Al Woods Have you ever wondered what it would be like to travel ...

cyclists pay

Why should cyclists pay UK road tax?

Why should cyclists pay UK road tax? – words Alan Woods Why should cyclists ...

girls tv series

Girls TV Series Launches in the UK – Sex Back In The City?

When trying to think of some writer/director/stars working at the moment, the most recent ...

upgrade your lifestyle

Upgrade your lifestyle – some tips that actually work

Upgrade your lifestyle tips that actually work – words Al Woods Upgrading your lifestyle ...