Property portfolios are replacing pension plans

Traditional forms of pension building, seen by many as unnecessarily complex, have now been surpassed by the buy-to-let market as a route to saving and retirement funding. As the value of the UK's property holdings by investors fast approaches the value of the whole country's workforce pension savings, the trend towards property as a pension plan has now been boosted by the Government's recent change to pension proceeds.

New rules on pension funding

Since April of this year, new 'pension freedoms' were introduced by the Government. The change is intended to allow freer access to pension funds for those aged 55 and older, and offers 25-per-cent of the pot as a tax-free lump sum. This move has been seen by many as an opportunity to build a property portfolio in order to more independently control their retirement fund.

Britain's buy-to-let army

The growing popularity of rental property investment has led to a collectively owned £1.25 trillion of property, spread amongst almost 2 million small-portfolio landlords, which is fast approaching the £1.6 trillion amassed in traditional pension schemes. Indeed, the buy-to-let trend is still growing, in no small part due to rising rents and readily available mortgages.

Accidental landlord phenomenon

BM Solutions, one of Britain's biggest lenders to landlords and part of Lloyds Banking Group, noted the difference between 'professional' landlords – those who an average of eight properties that generate annual rental yields of £60,000 – and the 'accidental' landlord – an individual who did not intend to become a buy-to-let investor, but instead let out their former home or inherited property.

The importance of financial planning

With two in three landlords owning only a single property, one fifth owning three or more and less than one in every hundred considered to be a 'serious' landlord with 15 properties or more, the importance of forward planning in growth management is clear. Indeed, there are reports of increased interest amongst the long-term clients of financial planners, showing that buy-to-let property is now considered a solid arm of investment management.

Review the progress of Villages Nature Paris over the last few weeks, before the grand opening

Discover here what the finishing touches of Villages Nature Paris looked like...

Read more

The opening of Villages Nature Paris

Feel your senses awaken from the moment you step in...

Read more

Call us
+44 2076600012

Our advisors are available from Monday to Saturday, do not hesitate to contact us.

(International call rate - No additional charge)

Monday to Friday from 8am to 7.00pm. Saturday until 3pm.

Subscribe to the newsletter

To be kept up-to-date on our investment opportunities, please suscribe to our newsletter.

Write to us

For more information you can also contact us by email, an advisor will be in touch with you.