Older Investors Turn To Btl Investment
Growing numbers of older investors are turning to buy to let property investment as a way to supplement their income, research suggests.
According to Commercial Trust, there's been a sharp rise in the number of older investors who are applying for buy to let mortgages.
The figures reveal there has been a 5.4% increase in the proportion of BTL mortgage applications from those aged between 65 and 75 last year using the specialist buy to let broker.
They also highlight that the number of over-55's applying for BTL mortgages and remortgages grew by 4%.
The largest number of mortgage applications came from the 45 to 54 age group, who account for 27% of all mortgage business.
Trend for older buy to let mortgage applicants
However, the trend for older buy to let mortgage applicants has been increasingly recognised by lenders who have raised the maximum age for an applicant to apply.
Also, the maximum age for the applicant's mortgage term to end has also increased.
As an example, Santander has increased its maximum age for the end of a mortgage term to 85 years old from 75.
The maximum mortgage term for a buy to let mortgage has also increased to 40 years from 25 years.
Commercial Trust's chief executive, Andrew Turner, said: "The age demographics for last year suggest that growing numbers of older people recognise the potential of a buy to let investment.
"Many people, our data indicates, who are reaching retirement are investing in bricks and mortar and the rental property market to fund their retirement."
London's BTL set for resurgence?
Meanwhile, one specialist property investment firm says that London 's BTL sector is set for a resurgence.
Surrenden Invest says that now may be the ideal time for landlords to consider commuter belt properties for investment.
They point to areas such as Luton as offering growing demand and easy access to the capital.
The firm's managing director, Jonathan Stephens, said: "Luton offers easy access to London without its housing costs. The town has a lively local culture and exhibits excellent growth potential.”
The firm also points to research from Savills that London will lead the country for rental growth over the next five years, with increases of 0.5% this year, rising to 4.5% in 2023.
That's a compound rate of 15.9% with the rest of the UK offering 11.5%.
Also, estate agents Jackson-Stops has flagged-up Luton as its top commuter hotspot for this year.