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.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.