A new study has revealed that more and more landlords are turning their attention to the private rental sector to save up for their retirement.
The latest BDRC Continental survey suggests that as many as 80% of landlords see their property as an income to supplement their pension and 6 in 10 of them intend to live off the rental income.
A total of 38% of landlords have looked at alternative retirement planning like fund investment but a third of them said that they think buy to let investment opportunities will offer them a better return on their money.
Many respondents also said they buy to let in the UK property market to give them an income, act as a long term investment or offset against a poor pension performance and hardly any landlords plan to sell all of their portfolio when they retire.
Rental yields have risen from 6.2% in the first and second quarters of this year to as high as 6.7% now, which is similar to the level in the third quarter of last year before it fell to 5.9% in the final quarter of 2011.
Copyright Press Association 2012
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