Pensions are the main driver of buy-to-let investment, data shows

by Gary Whittaker

Investment is something that people will go into for a number of different reasons. Whether it's for short-term or long-term gains, the majority of people, however, will be buying because they want to make a stronger return on investment than they would  with savings accounts alone. 

However, when it comes to investment in buy-to-let property, it would appear that many of the sector's investors put their money into market with the same end goal in mind. 

According to a recent study carried out by Sequre Property Investment, as many as 48 per cent of those who invest money into the private rented sector as an owner do so because they want their stock to build them a good pension fund, and supplement their income post-retirement. 

Not only does this mean that pensions are the main reason that people invest in buy-to-let property, but there has also been a rise in this activity in the last couple of years. The study shows that when compared to 2015, some two per cent more investors said this is their main reason for buying. 

"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," said Graham Davidson, managing director of Sequre Property Investment.

The research also discovered that on top of investing for a pension, as many as 13 per cent of people are buying as a way to leave behind assets and money for their children. Another 20 per cent said they want to be able to build a solid portfolio of buy-to-let properties that allows them to make a passive income that doesn't require too much input. 

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04-September-17General Lettings News