Later life buy-to-let purchases increase by 52%

According to Paragon Bank, the number of buy-to-let house purchases made by later life landlords has increased by 52% following the reopening of the housing market.

In the 12 months leading up to June 2021, Paragon Bank’s analysis revealed that the number of buy-to-let house purchases made by landlords aged between 60 and 64 had increased by over half compared to the same period the year before.

While this was the highest percentage increase of any age group, later life landlords remained the second smallest age bracket, accounting for just 5.08% of total buy-to-let purchases.

Richard Rowntree, Managing Director at Paragon Bank, said:

There was a distinct spike in the number of purchases made by those nearing retirement age once the housing market reopened in May 2020. There could be many contributing reasons for this trend, with low returns from savings and stock market volatility being a potential factor as this demographic seeks to boost retirement income.

“The pandemic may have also led to an increase in people around this age deciding to either take redundancy or early retirement, which would have given them potential access to a lump sum of money to invest, or they are simply experienced landlords who took advantage of the Stamp Duty holiday to lower their purchasing costs. Of course, sadly, inheritance can also result in a one-off cash boost.”

The second-highest increase in buy-to-let landlords was in those between 40 and 44, who recorded a 49% growth, followed by 55 to 59-year-olds (45%).

Richard Rowntree added:

While there was a sharp increase in older landlords purchasing new homes, it was also encouraging to see the majority of purchases in terms of absolute numbers being made by those aged between 35 and 50. This suggests that there’s a strong pipeline of younger landlords growing portfolios.”

If you’re a landlord looking to purchase your first buy-to-let or expand on your portfolio, our commercial finance team can source the best possible terms and a flexible arrangement tailored just for you. If you’re interested in learning more about how to make the most out of your property opportunities, don’t hesitate to get in touch with one of our expert advisers today.