Belvoir Enters An Age Of The ‘Silver Fox’A new generation of older landlords is “almost stumbling” into private buy-to-let housing – according to a leading UK specialist in residential lettings.
And, for advice, the novice investors are turning to Belvoir – which has an office in Harborne.
It’s a trend that’s been growing over the last four years and it is thought that there are about a third more landlords, in their 60s, than there were then.
“I would say that the number has hit its highest level in the last year,” says Dorian Gonsalves, Chief Executive Officer at Belvoir.
“At first we were surprised by the rising number of enquiries that we were processing on behalf of first time buy-to-let investors in their 60s. But the reasons they were giving have now become very familiar.”
Some reports refer to them as a generation of ‘silver foxes’ who are turning to the private rented sector for two main reasons.
As they make plans for their approaching retirement many have been shocked by their projected pensions – and started to worry whether their funds will be buoyant enough to finance their lifestyle.
Others had planned to sell up and retire somewhere else, closer to their families, into the country or to a warmer climate abroad. But their property wasn’t worth as much as they expected.
So, instead, they have decided to rent out their property and use the released equity as a deposit to buy another one. Or some prefer to use the rental income to, in turn, rent their own retirement property.
Others are staying put but taking advantage of the housing market slump to buy their own low-cost property for renting to tenants who are looking for a less expensive alternative to first-time house purchase.
“We were among the first to spot this trend because they have been coming to us for advice,” says Paul Dearnley who owns Belvoir’s Harborne office.
“They are not young career landlords. These are people that, late in life, have found themselves in a scenario they never thought they’d be in. And they are finding that investing in property can be a lot more transparent than trying to understand the intricacies of complicated pension funds.
“This group also inherit lump sums following the passing of older relatives and have nowhere else to put money and get a return as interest rates in banks are so low.
“Fluctuations in house values are more straightforward and people can often see where they stand a lot more clearly.
“But, even so, it’s still an area where they need expert advice before they take a leap outside their comfort zone. Can they really afford to do it? Can they find the right tenants? And can they find the right place to move into, themselves, where mortgage or rent payments are within the income they are receiving from their own tenants?
“The figures need to balance – and that’s where letting agents can be really useful. We don’t charge for our advice and if people want to dip their toe into the private rented sector we can handle all that for them because it’s what we do.”
