Hamptons Estate Agents estimate that 140,000 buy-to-let landlords who bought property in the 1990s sold their property last year to fund their retirements. Hamptons warn that this is the start of a trend and the number is likely to rise as more of that generation approach retirement. Younger generations generally do not have the money available to invest in property, so the gap is being left unfilled, contributing to the scarcity of rental properties.
Along with age, other reasons cited for the ‘exodus’ of landlords were disappointing returns on investment, the general economy, tax, and regulatory changes.
Whilst rents for new tenants are currently high, older landlords with existing long-term tenants may experience a much lower rate of return.
Hamptons’ research showed that, in Britain, around 96,000 existing landlords will turn 65 each coming year. 924,000 are already over the age of 65 and, between 2010 and 2022, the number of landlords retiring each year has doubled.
May 24th, 2023
