MARKET LATEST: Buy-to-let acquisitions jump among older landlords

The number of buy-to-let acquisitions made by landlords nearing retirement age increased by more than half following ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - MARKET LATEST: Buy-to-let acquisitions jump among older landlords | LandlordZONE.

MARKET LATEST: Buy-to-let acquisitions jump among older landlords

The number of buy-to-let acquisitions made by landlords nearing retirement age increased by more than half following the re-opening of the housing market – more than any other age bracket.

There was a 52% increase in buy-to-let purchases made by landlords aged between 60 and 64 in the 12 months to the end of June 2021 compared to the same period the previous year, according to Paragon Bank. However, as a proportion of the overall market, this age bracket remained the second smallest at 5% of buy-to-let purchases.

Distinct spike

MD Richard Rowntree says the distinct spike could have been prompted by low returns from savings and stock market volatility as older investors looked to boost retirement income.

“The pandemic may have also led to an increase in people around this age deciding to either take redundancy or early retirement, which would have given them potential access to a lump sum of money to invest, or they are simply experienced landlords who took advantage of the stamp duty holiday to lower their purchasing costs,” says Rowntree. “Of course, sadly, inheritance can also result in a one-off cash boost.”

Encouraging

Landlords aged between 40 and 44 recorded the second highest percentage increase at 49%, while this group also saw the greatest increase as a proportion of overall purchases, rising from 15.2% of the market in the year to the end of June 2020 to 16% this year.

 The third highest increase was among 55 to 59-year-olds (45%), while over 65s recorded the smallest increase at 26%.

Rowntree adds: “It was also encouraging to see the majority of purchases in terms of absolute numbers being made by those aged between 35 and 50. This suggests that there’s a strong pipeline of younger landlords growing portfolios.”

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - MARKET LATEST: Buy-to-let acquisitions jump among older landlords | LandlordZONE.

Source : Landlord Zone More   

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NEW: Government’s latest ‘green homes deal’ to be revealed this week

The government is expected to pledge to landlords and homeowners that installing a heat pump will cost ©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - NEW: Government’s latest ‘green homes deal’ to be revealed this week | LandlordZONE.

NEW: Government’s latest ‘green homes deal’ to be revealed this week

The government is expected to pledge to landlords and homeowners that installing a heat pump will cost no more than fitting a standard boiler by 2030 as part of its new Heat and Building Strategy due to be published this week.

Business and Energy Secretary Kwasi Kwarteng is set to announce plans to reduce the cost from £10,000 to £5,000 within three years along with a pledge to invest £60 million in heat pump innovation to make them smaller and easier to install.

However, landlords and heating experts have warned that any support will need to be easier to access than previous green schemes.

The government will announce 2035 as the cut-off date when natural gas boilers will no longer be installed in existing homes following its promise to fit 600,000 heat pumps each year by 2028 to help the UK meet its net zero target.

Low-carbon consultancy Gemserve says it understands that BEIS is considering an obligation on manufacturers which would require them to meet a minimum threshold of renewable heating system sales as a proportion of their total.

This proposal is similar to obligations placed on car manufacturers over recent years and has the potential to drive down costs.

Kevin Wellman (pictured), CEO of the , tells LandlordZONE that he expects details of the Clean Heat Grant – which comes into effect next March – finalised, including which heating systems will be eligible.

He would also like to see a viable alternative introduced to the .

“It is important that any schemes are easy for landlords and qualified installers to access, as there is a real danger of a miss-match between supply and demand,” he says.

“In order to achieve the government’s aspirations for net zero, 100,000 installers need to be upskilled in low carbon technologies.”

Many landlords believe the targets are wishful thinking and that its aim to see all rented properties raised to an energy rating of band C or above by 2030 is a ‘’ unless upgrades are backed with financial and practical support.

Read the Commons guide to the

©1999 - Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® - NEW: Government’s latest ‘green homes deal’ to be revealed this week | LandlordZONE.

Source : Landlord Zone More   

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