LONDON, October 5, 2012 /PRNewswire/ --
Surge in landlords over 65, as younger generation turn their backs on buy-to-let
New research from Simply Business today reveals a steep rise in the number of UK landlords aged 65 and over. Findings based on more than 300,000 landlord insurance policies show a significant trend in emerging female retiree landlords with an increase of almost a third in 2012 (24.6%) and over 50 per cent since 2009.
With over 65s forced to work longer to fund their retirement, many have turned to their home for additional income, giving rise to the "accidental landlord". Simply Business reveals that 93 per cent of its landlords own just one property, with evidence now showing that buy-to-let is becoming a more conscious choice for older people.
A recent ONS report revealed the number of workers above the official retirement age has doubled since 1993, with "Property Manager" one of the most popular positions registered. The Simply Business research shows that three quarters of retiree-age landlords (74.3 percent) have owned the property for more than three years, suggesting many are opting to stick with the buoyant rental market instead of selling while house prices remain depressed.
By stark contrast, the number of 18-25 year old landlords has decreased rapidly, experiencing a downward trend of 38.4 per cent over the past three years. This suggests that more second-time buyers and young families are now able to sell and move up the property ladder without the danger of negative equity.
Jason Stockwood, CEO, Simply Business commented: "In today's economic climate, choosing to rent out your property rather than sell immediately has been a good option for many when looking to move, and with the current squeeze on pensions this is proving a good source of income for people of retirement age.
"Buy-to-let can be a tough marketplace to enter, but there is a great deal of support available for those looking to take the plunge and we provide specialist insurance for people of all ages to start and even grow their portfolios. As a result, many who started out as so-called 'accidental landlords' have chosen to remain in the market for the longer-term and to continue reaping the financial benefits."