Supporting landlords operating past and approaching retirement
March 2025
There’s a growing number of landlords in the UK today who are navigating the Buy to Let (BTL) market in their later years. Data suggests that 39% of those acting as part-time landlords are approaching state retirement, while one in five retirees are already operating as full-time landlords[1].
Financial planning is often critical for people in their later years, but for landlords, there’s added complexity that makes speaking to a tax advisor all the more important. This includes the implications of passing rental properties and potentially debt onto family members and the challenges of navigating new regulatory and tax changes.
So, how can brokers help landlords enter this new retirement phase?
How the typical landlord is changing
The profile of UK landlords has transformed over the past decade. Today, landlords are on average 64 years old, with 51% aged 65 and over2. This ageing demographic includes those either owning their properties outright or managing them through interest-only mortgages.
Today’s landlords are also more likely to hold extensive BTL portfolios (on average, 8.7 properties) managed under their personal names or held through limited companies2.
Understanding this demographic of landlords allows brokers to signpost clients in the right direction of tax professionals who can help landlords to plan for the future and minimise tax liability for those who may inherit the property portfolios. Currently, 60% of landlords have BTL loans with an average outstanding debt of £665,000 and an average Loan to Value (LTV) of 50%1.
Tailoring advice to this demographic
For many landlords nearing retirement, BTL investments provide essential retirement income. However, managing the future of a property portfolio can be tricky. Financial planning becomes increasingly important during this stage, with considerations such as tax efficiency and long-term wealth management coming into focus. This is where brokers can introduce landlords to professional tax advisors, while also building a network that can help landlords address their broader wealth management needs.
Brokers can add value to clients by helping them stay informed on changing mortgage rates and guiding them towards the most suitable products for them. By helping clients to secure the best rates and terms, brokers can then help these landlords to make the most of their rental income during retirement. This year, there’s set to be £48.2 billion worth of BTL mortgages maturing, meaning landlords will soon be assessing their options and searching for this advice1.
Planning for the future
Landlords will also be keen to understand if there are any tax-efficient strategies for their property investments and how to set these up. For example, limited company BTL is becoming more and more popular with today’s landlords2. For landlords with larger portfolios or those exploring ways to manage their property investments alongside their personal tax position, limited company BTL may be one option worth considering.
Some landlords choose this route as part of their long-term financial planning, though individual circumstances and professional advice will determine the most suitable approach. Brokers can really use their expertise in this area to offer a more ‘above and beyond’ service, even introducing landlords to financial planning and wealth management advisors.
Similarly, when planning ahead, landlords will want to know of any regulatory and taxation changes which could affect their portfolio in the long term. By asking their clients about plans for their property investments, brokers can better understand how Capital Gains Tax, Inheritance Tax and Stamp Duty Land Tax policies will have an impact, allowing them to signpost appropriate professional advice.
It’s also important to discuss regulatory updates such as the Renters Rights Bill and government proposals to set new energy efficiency measures and how they could impact BTL portfolios. Taking a proactive approach encourages landlords to explore forward-thinking options early.
As BTL landlords approach and enter retirement, brokers can play a central role in supporting clients by signposting them to financial and tax planners to ensure their arrangements are as tax-efficient as possible. With expert guidance on mortgage products and regulations, brokers can also become trusted partners, empowering landlords to make informed, long-term financial decisions.
References
- Pegasus Insight: Landlord Trends syndicated study Q2’24
- Pegasus Insight: Landlord Trends syndicated study Q2’24
