Reapit has said that proposed National Insurance charges on rental income could shift the buy-to-let market in favour of older investors.
The global PropTech company believes the current exemption for those of State Pension age could give retirees a post-tax yield advantage, encouraging renewed investment from this group.
Under the Government’s 2025 Budget proposals, landlords would become liable for National Insurance on rental income.
However, those above State Pension age would remain exempt, a change that Reapit says could make property investment comparatively more profitable for older landlords.
Dr Neil Cobbold, commercial director at Reapit, said: “While younger landlords are reshaping the market, agencies should not underestimate the resilience and value of older investors.
“If National Insurance is levied on all rental income but the current exemption for those over State Pension age holds, these investors could see higher net yields than their younger counterparts, making property investment more attractive to retirees.
“It will be for agencies across the country to sell this potential opportunity to their older landlords in the face of regulatory reform.”
According to the English Private Landlord Survey 2024, landlords with larger portfolios are both more likely to use an agent and closer to retirement.
The survey found that 77% of landlords with five or more properties were aged 55 or over and more likely to use a fully managed service from an agent.
Cobbold added: “For agents, it could represent a valuable opportunity. Older portfolio landlords who rely on experienced agents to professionally manage their properties can trust those agents to guide them in investing beyond their local area in areas that deliver strong rental yields.
“Agencies with the widest reach and the tech to combine sales and lettings on a single platform are best placed to respond.
“Integrated operations give these agents the insight to support every investor, from millennial first-timers to pension-age portfolio holders, helping them identify the right sales opportunities that can deliver the best rental yields across the country, rather than just the landlord’s local area.”
