The latest trend sweeping through the property industry is the rise of the ‘granlord’ – and it seems it is here to stay.
Granlords are typically people of retirement age who have taken the decision to invest in a buy-to-let property and act as a landlord, enjoying the numerous benefits this position entails.
With significant changes to pension regulations due to come into effect on April 6th, increasing the flexibility attached to many funds and allowing people to withdraw lump sums without high tax charges, investing in property is set to become a hugely popular option.
Rightmove believes activity among granlords is already high, with many agents reporting a surge in interest from this demographic.
What’s more, the portal noted that the highest returns for the lowest investment can be found at the lower end of the market, which is exactly where many granlords are now looking.
However, apartments and terraced houses with one or two bedrooms are coming to the market in slightly smaller numbers than mid and high-range properties, explained Rightmove director and housing market analyst Miles Shipside.
This means granlords will be in direct competition with first-time buyers, who may lose out as older buy-to-let investors take advantage of their strong financial position to secure smaller properties with the intention of letting them out.
Overall, the number of newly-listed properties is up 3.2 per cent this month in comparison with February, although growth is just 2.6 per cent when it comes to first-time-buyer properties, which are also the most likely granlord targets.
If you are interested in capitalising on the upcoming pension regulation changes in order to build a buy-to-let property portfolio, get in touch with your local Leaders branch for free and impartial advice from one of the UK’s largest property experts.