 rating. Under government proposals, new lets will need to have an EPC rating of at least C by 2025, and by 2028 for existing lets – although these deadlines are yet to be confirmed by Whitehall. Is pension or buy-to-let best to fund your retirement? The average gross yield on a new buy-to-let purchase was a healthy 6.2pc, according to Hamptons. That is in contrast with a target 4pc rate of income from a typical pension pot in drawdown. It is possible to make good money in brick){kind=link}
Research is vital so that when you become a landlord, you invest wisely
Bricks and mortar have been a pillar of British retirement plans ever since the birth of the buy-to-let mortgage more than 26 years ago.
It’s a tried and true strategy which – if done properly – gives investors two sets of returns; rental income and capital growth of their underlying asset. More than half of landlords have invested in property as part of their retirement plans, according to the English Private Landlord Survey.
But property investment is not without its pitfalls, and recent tax and regulatory changes have triggered an exodus of landlords from the sector. Interest rate rises have also dramatically increased the cost of borrowing, triggering a profit crunch which has pushed thousands of investors into the red.
Becoming a landlord is not for the faint hearted; research is vital to ensure your investment remains a good one.