Pensioner buy to let landlords ponder selling-up

Despite offering a valuable retirement income, more than 40% of retiree landlords are considering off-loading their buy to let property, according to a survey.

Responsible Equity Release also found that seven in 10 pensioner landlords said that without their rental income they would struggle to get by.

More than 1,000 retired people who owned a rental property were surveyed and 92% of them said mortgage interest relief changes would have an impact on their profits.

The situation is so worrying, says the firm, that pensioner landlords are now wondering whether it is worth hanging on to their buy to let property at all.

Pensioners with a buy to let property

 

The firm’s managing director, Steve Wilkie, said: “For a lot of pensioners their buy to let property has helped because of low interest rates while savings have struggled and attract little interest, their property income is strong.

“Many say they would really struggle to make ends meet without their buy to let income boost.”
He said that it appeared the Chancellor George Osborne has forgotten that his new tax on buy to let properties will not affect wealthy landlords.

Mr Wilkie added: “The changes will hit hard-working honest people who may have just one single buy to let property and were hoping it would earn extra income in retirement.”

Landlords urged to use not-for-profit letting agents

 

Meanwhile, one housing law specialist is urging landlords to consider using a not-for-profit letting agent rather than a private firm.

Julie Ford says that social letting agents have lower overheads and a good record in tenant vetting accurately and helping to reduce void periods for landlords. Some also guarantee a rental income.

Ms Ford has more than 15 years’ experience in advising private rental sector tenants and landlords and she says benefit claimant tenants are not being considered since agents and landlords increasingly choose safe options for people to live in their property.

Using a social letting agent

 

However, she says landlords have an alternative and explained: “The main reason for using a social letting agent is a rent guarantee lease option which will pay the landlord an agreed rental every month even if there’s no rent being paid.”

She added that social letting agents also help with maintenance costs and have no tenancy renewal fees or hidden extras.

Ms Ford made the claims in her blog post and suggests that social letting agents charge much less than private firms with one such agent charging just 8% for full management and ‘no extras’.

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