Over-50s 'are joining buy-to-let market'

More people over the age of 50 are joining the buy-to-let market, according to new research.

A study by Saga, which provides financial services to over-50s, revealed that younger Britons are not the only ones enjoying the recent buy-to-let boom.

The company predicted that there will be a 24 per cent increase in people of this age group becoming landlords over the next 12 months.

Andrew Goodsell, chief executive of Saga Group, said that the increase in buy-to-let interest means that new investors should make sure they brush up on tax requirements, such as properly declaring income and taking advantage of tax relief.

"It is no surprise that over-50s own the majority of second and rental properties in the UK; however, as more and more decide to follow this route, it is important that they understand the tax implications that rental income will have," he said.

The deadline for landlords to declare any tax underpaid and benefit from a 90 per cent penalty charge reduction is June 22nd.

Over-50s who will be affected are encouraged by Saga to seek professional financial advice.

Among the products provided by Saga are home, travel and car insurance.

Buy-to-let landlords 'looking for investment through retirement'

The typical buy-to-let landlord is looking for an investment that will last through retirement, a spokesperson from the Association of Residential Landlords (ARLA) has claimed.

Malcolm Harrison set out a profile of what he called the "typical" investor in the sector. Most such landlords are aged 35-plus, "fairly cautious" and will look around carefully before selecting a property, he explained.

"He will work out his basic budget - what the property's going to cost him, what the mortgage is likely to be … his rental valuation and [whether it is] going to cover everything. He'll then invest accordingly," said Mr Harrison.

He said that last autumn's ARLA report predicted a three per cent growth in the number of tenancies for the next decade.

"We think the buy-to-let market will grow by about twenty to thirty thousand a year," said Mr Harrison, adding that this is only a small proportion of the total UK housing market.

However, he added that "it's always a good time to look around for investments".

According to figures from the Council of Mortgage Lenders, 330,000 buy-to-let mortgages, worth a total of £38.4 billion, were taken out last year.

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