Over-55s snap up buy-to-lets worth £10bn to boost pension
Over-55s have seen nearly £1billion a day added to the value of their housing wealth between March 2020 and June of this year.
They have also snapped up £10billion worth of buy-to-let properties in a bid to boost their pensions.
In March 2020 they owned more than £3.5trillion of housing equity, just under two-thirds of the UK’s housing wealth.
Since the start of the pandemic, average values are up 23 percent, according to analysis of Office for National Statistics figures by retirement specialists Just Group.
This means the over-55s are sitting on property wealth of £4.4trillion, the equivalent of £1billion of added value every day for 27 months.
Stephen Lowe, of Just Group, said: “Many will have benefited from the property price rises that have driven the market to record highs since the start of the pandemic.”
“Given over-55s hold the majority of net housing wealth, it’s unsurprising they will have reaped the biggest rewards.”
“This vast storage tank of wealth they have accumulated will inevitably play an important role in their future finances.”
Many of them may have used equity in their homes to buy rental properties.
More than 483,000 households over 65 in England drew an income from residential investment last year, according to estate agents Savills.
The number of homes they own rose from 1.3 to 1.5 million in three years.
More than half of landlords consider their properties as part of their pension and the trend is likely to accelerate, say Savills.
One in 10 of those approaching retirement said that property would be their biggest income source.
Lucian Cook, of Savills, said: “Many are proclaiming that the golden age of buy-to-let is over because of increased regulation, a higher tax burden and the prospect of further increases in the cost of debt.”
“But it is set to play an increasingly important role in pension income, with many landlords hitting or approaching retirement age.”
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