New research has revealed that nearly half of buy-to-let sales in Britain are driven by investors looking for returns to boost their pension.
48% of property investors said that they had purchased their buy-to-let property with the intention of supplementing their income during retirement, according to the survey from Sequre Property Investment.
The firm also suggests that since 2015, the market has remained relatively unchanged, despite the raft of tax changes impacting on the buy-to-let sector. In addition, it indicates that demand for property underlines that pensions do not provide the same financial returns as buy-to-let for future income.
In addition, the research found that young professionals are benefitting from the buy-to-let boom, with 15% of Sequre Investors aged 21 to 30 –up from 13% two years ago.
13% said that they chose to invest in the sector to provide a solid base for their children and loved ones.
20% replied by saying that they are trying to grow an established portfolio. Many are looking to spread their capital across several properties in order to achieve higher overall returns.
Graham Davidson, Managing Director of Sequre Property Investment, noted: ‘Each person’s motivation for investing in buy to let can vary, and in many cases, there is a primary motivation followed by several others. Investing in property not only provides great returns when the deal is right, but it’s also a tangible asset that can be held for capital growth or sold for the profit.’
‘Of course, investors need to be savvy with where and what they choose to invest in, so they can fully maximise their return on cash invested. Ultimately, our research shows that motivation is often driven from one of four main ambitions. With pensions and income for retirement being such a huge focus back in 2015, this momentum has clearly stuck with a large majority of individuals and buy to let is still providing the best returns over annuities and many other investment types.’