20th June 2019
The Ageing Population and Buy To Let
The Ageing Population – Buy To Let
There are always a variety of trends to follow in the housing market. In recent years, we have seen large-scale house price fluctuations and regional housing bubbles. Alongside the emergence of older first-time buyers. There has been a buy-to-let boom and landlords have been reassessing the merits of their product portfolios. We have even seen a flurry of property raffles take place, as sellers struggled to achieve the prices they expected for their homes.
Some of these trends are driven by supply and demand and dynamics within the housing and mortgage markets. Others are influenced by factors way beyond. The UK population is living longer. Although this is hardly a new trend it is starting to make a real impact on mortgage products and lending criteria. This throughout the lending community and also the rental market.
In recent weeks, statistics have shown that the over-50s accounted for 15 per cent of rented households so far this year, up from just 11 per cent in 2012. Nearly a third of this group were suggested to be pensioners. It is estimated that over-50s have rented 791,580 homes in Great Britain in 2019, 61 per cent more than in 2012. It seems these numbers continue to rise at a pace.
Buy To Let Influence
Recent data reveals that there was a notable surge in the number of older Buy To Let investors during 2018. In addition, May also saw a significant rise in the number of searches from intermediaries looking for later life lending options. For Buy To Let, the top searches were for lending to limited companies and first-time landlords. It appears that renters are getting older, Buy To Let investors are getting older and residential borrowers are also getting older. So how is the market adapting?
Mortgage terms have crept up, with some lenders extending their maximum age restrictions to meet the shifting needs of older borrowers. This is also the case in the Buy To Let sector, where maximum ages at the end of product terms have risen, and in some cases lifted altogether.
The Right Advice
These are moves which highlight how important the advice process is for those advancing in their years, not just attached to their personal investment or housing requirements. More and more children are looking to their parents and even grandparents for financial support in their property purchases. This is an area which is going to become even more complex in coming years. Hence, there is a very real need for lenders in the residential and Buy To Let sectors to adjust their offerings accordingly. The correct advice is becoming more and more critical. If you are an older borrower, an “elderly” investor or looking to help your younger family members please do make sure you speak to an independent broker, one with real and relevant experience. Access to the whole of market is vital as this ensures choice across all products on offer.
Here at The Finance Roome we see more and more older borrowers every single day. Hence we are very well placed to help. Just call or email us and we will do the rest. For your peace of mind and the best possible advice for your future.