Very few landlords plan to take advantage of pension reforms to invest in or expand their existing portfolio, according to the National Landlords Association (NLA).
The NLA reports that of its members with a pension in place, just 5% are planning to take advantage of the changes, which allow people to withdraw a lump sum of their pension at 55.
Some 14% of those surveyed said they would consider taking advantage of pension freedoms, while 11% said they didn’t have enough of a pension to withdraw a lump sum.
A small number of landlords (7%) said they had other plans for their funds, and 19% told the NLA they were still undecided about whether to make use of the reforms.
Two thirds of landlords confirmed to the Association that they are planning to live off their portfolio income when they reach retirement, while a quarter say they plan to sell off some of their properties.
“There has been a lot of talk around pensions being used to invest in buy-to-let (BTL) since the announcement on pension freedoms was made last year. While the changes may be attractive to those considering a move into BTL, it’s clearly not that popular an option for landlords,” says Carolyn Uphill, chairman of the NLA.
“Those currently in the market already have an asset to use if they want to expand and therefore, depending on circumstance, will have the means to put a lump sum towards other investments or plans; that is if they want to withdraw it at all,” she adds.
Last week the NLA urged landlords to lobby MPs over tax changes announced in the Summer Budget.