With a growing number of people becoming disillusioned with pensions and bank saving rates at an all-time low, more investors understandably now see their properties as a means of funding future retirement, research shows.

1. More Investors See Property As A Pension
With a growing number of people becoming disillusioned with pensions and bank saving
rates at an all-time low, more investors understandably now see their properties as a
means of funding future retirement, research shows.
According to a survey conducted by BDRC Continental, 61 per cent of landlords plan to
live off the rental income from their investment properties, 20 per cent will sell some of
the properties in their portfolio, whilst five per cent intend to dispose of all of the
properties in their portfolio to fund retirement.
Mark Long, director at BDRC Continental, said: “Landlords consistently tell us that they
see their property portfolio as forming a critical part of their pension provision for the
future. On average, landlords intend to remain active in the rental sector for another 15
years or so, and see a combination of capital gains and rental income as underpinning
their pension strategy.”
With research showing tenant demand increased by seven per cent in the third quarter of
this year and average yields increasing 0.5 per cent to 6.7 per cent, it is not surprising that
many private landlords view property to be a safer bet than other investments such as
pensions.
Adam Feather, managing director of Robert Anthony estate agents, says that his company
has seen a sharp increase in the number of people looking to invest in properties in the
capital, particularly from people overseas, with houses and flats for sale in Little Venice,
Regents Park, Primrose Hill, Marylebone, Hampstead and Baker Street proving
particularly popular.

2. “Property prices in central London and the areas surrounding it are expected to edge up
faster in the next few months as the supply and demand imbalance becomes even more
pronounced,” Feather said.
The problem facing many tenants is that the supply of houses and flats to rent in
Primrose Hill, Regents Park, Marylebone, Baker Street, among a host of other highly
desirable areas are in short supply, which in turn is pushing rents higher as a
consequence; an attractive proposition for existing landlords and investors looking to
acquire properties in those areas.

3. Andrew Ellinas, director at leading estate agents Sandfords, commented: “We expect an
influx of both investors and immigrants including French bankers and entrepreneurs
coming over here for the more business-friendly environment. This invasion on two
fronts will boost both ends of the market, with lettable flats at the lower end being
snapped up by investors and large family homes being in demand from business people
looking for somewhere to live.”
Any investor looking to take advantage of high demand for houses and apartments to
rent in Marylebone, Primrose Hill, St Johns Wood, Baker Street, among other highly
desirable districts, by acquiring property, may wish to consider Neil Yong’s ‘10 minute
rule’.
Young, founder of property investment firm Young Group, has personally accumulated a
private property portfolio collectively worth around £10 million. Geographically, all of
Young’s investment properties are located in London, where prospects for capital growth
and high rental returns are generally good. He says he would not consider buying outside
of London or even abroad as it does not fit in with his strategy.
Young has adopted what he refers to as his “10 minute rule”, which means that he only
buys residential properties which are located within close proximity to good transport
links and amenities.
“I’m primarily only interested in properties that are situated within 10 minutes walking
distance to good transport links, particularly a tube station, food stores, bars and
restaurants, as these facilities are generally in high demand from tenants.”
Wherever you choose to invest in property, always ensure that you conduct all necessary
due diligence prior to investing.