Recent changes to the taxation of the BTL sector could create a new pension crisis as people dependent on rental property to fund their retirements are affected, says a leading landlord organisation.
Approximately 1.8 million people in the UK – 77 per cent of landlords – say they rely on their rental investment for their retirement, with 68 per cent saying it represents a good way to plan for retirement, a Mintel consumer market research report has shown.
But the Office for National Statistics (ONS) estimates the average retired household spends £21,770 every year, leaving a shortfall of more than £15,000 after taking the full basic state pension of £6,359.60 into account, which would require savings of £300,000.
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