The older generation are making more buy to let property investments, as they look to supplement or even replace pensions.
According to new research from Commercial Trust, the older generation showed a notable rise in the number of buy to let mortgage applications in 2018.
Commercial Trust saw older borrowers aged between 65 and 75 increase their share of buy to let mortgage applications by 5.43 per cent in 2018, compared to just a 0.03 per cent rise for 25-34 year-olds.
The buy to let broker also reported a 4 per cent increase in the proportion of buy to let purchases and remortgages from over 55s, who now account for 39 per cent of all buy to let activity.
For purchase only applications, older investors over 55 were responsible for 29.7 per cent of all business in 2018, an annual increase of 8 per cent.
Older buy to let mortgage applicants are being encouraged by a number of lenders, who have increased the maximum age permitted at both application and at the end of the mortgage term.
Santander now cater for older investors by recently increasing their maximum age at the end of the mortgage term criteria from 75 to 85 years old and the maximum mortgage term on its buy to let range from 25 years to 40 years.
Precise now has a maximum application age of 80 on a maximum term of 35 years, while The Mortgage Works sets no maximum age at term end for experienced landlords.
Chief executive at Commercial Trust, Andrew Turner, said: ‘Our look at the age demographics for 2018 buy to let mortgage activity, suggests that increasing numbers of older people are recognising the potential of buy to let investments.
‘Our data indicates that many people reaching retirement are choosing to invest in bricks and mortar and the rental market as a means to fund their retirement years.
‘Investing in property has the potential to deliver attractive rental yields and achieve capital growth, despite industry changes. I fully expect that the returns fair better than many other forms of investment.’
Source: Residential Landlord