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81% of private landlords see properties as pensions

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81% of private landlords see properties as pensions

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Published by Max Salsbury for 24dash.com in Housing and also in Finance, Local Government

81% of private landlords see properties as pensions 81% of private landlords see properties as pensions

Four-fifths of Britain's private landlords claim that their properties are their pensions, according to new research.

BDRC Continental's independent Landlord's Panel Survey has revealed that 61% plan to live off their rental income, whilst 20% will sell some of their properties.

Many of those surveyed said they viewed property as a safer investment than a normal pension. Of the 10% of private landlords that used previously invested funds to purchase their property outright, a third said it was because they believe investing in property will produce a better return on their money (31%).

Mark Long, Director at BDRC Continental, said: “Landlords consistently tell us that they see their property portfolio as forming a critical part of their pension provision for the future. On average, landlords intend to remain active in the rental sector for another 15 years or so, and see a combination of capital gains and rental income as underpinning their pension strategy.”

BDRC Continental’s Landlords Panel has been monitoring the performance and sentiment of the private rental sector in Britain every three months since 2006. According to the latest wave of the research, optimism fell by six points compared with Q2 2012, meaning that in Q3 this year key confidence indicators almost exactly match the same period a year ago.

Mark Long concluded: “Despite the challenging economy, the private rental sector remains resilient for most of Britain’s private landlords. In Q3 this year we saw further evidence of that as the number of private landlords with a single property making a loss fell by three quarters from 16% in Q2 this year to 4% in Q3, and although short-term confidence has taken a bit of a seasonal knock, I fully expect optimism to recover as we end 2012 and enter 2013.”

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