February 20, 2012
With the UK economy still stuck in doldrums, and financial confidence at an all-time low, those lucky enough to own a property portfolio now regard them as a pivotal part of their post-retirement income.
According to a survey by the National Landlords Association (NLA), 81% of landlords expect to rely on their portfolio to help boost their finances once they retire. This follows news that the number of savers contributing to pensions dropped by 8% in the last 10 years, falling from 46% to 38% of all UK employees.
Landlords are increasingly pessimistic about the UK economy, the NLA has revealed, with confidence dropping to just three points, down from 11 points one year ago. And according to NLA Chairman, David Salusbury, “confidence in the financial market is at an all-time low”.
“This combined with record low interest rates means that many individuals are looking for alternative ways to secure their financial future,” he added.
“Private-residential property can be a sound long-term investment for those planning their retirement. But potential landlords must realise that letting property is a lot more complicated than contributing to a pension.
“Becoming a landlord is just like starting any other small business. Anyone considering using property to bolster their pension plans must make sure that they put together a long-term business plan, taking account of the various regulations governing the letting of property, as well as their responsibility to tenants.”
