Youngsters look to the Future with Buy to Let Industry

21 September 2012 Categories: News

Youngsters look to the Future with Buy to Let Industry

Young investors who want to secure a lucrative retirement for themselves are starting to consider the buy to let industry as a top prospect rather than the more traditional pension scheme, says the Department of Work and Pensions. According to recent figures, the number of 22-29 year olds who currently pay into some form pension scheme has fallen from 43% in the mid-90s to just 24% now.

At the same time though, the number of buy to let investors who are choosing to purchase their first rental property in their 20s has risen from 5% before the start of the current recession (pre-2007) to more than 15% now, and according to top London letting agent, Ludlow Thompson, this figure rises annually.

Stephen Ludlow, director of Ludlow Thompson, commented on the changing face of young investment saying, “Many of the young landlords we see are bankers or traders who view buy to let as a reliable alternative to the unpredictable stock market that they work in day-in, day-out,”

“They often use their annual bonus as the deposit for a buy-to-let mortgage,” he added.

With the average rental income now exceeding £800 per month it is no wonder young investors are turning to the private rental sector for good returns, and especially when they consider the current state of pension funds and annuities.