Landlords are increasingly relying on the rental income generated from their properties to fund their retirement.
According to a survey from BM Solutions / BDRC Continental, a third of landlords now view their buy-to-let property portfolios as a means to prepare their finances for retirement, with a significant 75% agreeing that their property is their pension.
More landlords are also turning to the rental market to supplement their monthly income, with 43% reporting they are doing this – up by three percent from quarter two's survey.
The research revealed that confidence in the buy-to-let sector is now at the highest it's been in six years and almost back at pre-credit crunch levels.
In particular, landlords are optimistic that they will continue to reap the rewards of higher rental yields as the economy continues to recover. This was despite the average rental yield dropping slightly in quarter three of this year, from 6.1% to 6%.
The strongest performing region was the North East where landlords were achieving average yields of 6.7%, while demand for rental property remains greatest in the East of England and London.
Commenting on the findings, Lee Tillcock, editor of Business Moneyfacts, said: "Given the continuing buoyancy in the property rental market it is clearly a sensible option for those individuals looking for monthly returns on their investments.
"The improving picture of house price rises will only serve to increase this attraction for the near future as capital growth becomes another factor in more long-term investment plans."
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