The number of older buy-to-let investors rose significantly last year, according to Commercial Trust.
Data released by the broker shows that borrowers within the 65-75 years category rose in 2018 by 5.43 per cent. The only other category to see a rise in borrowers was the 25-34 years, which rose by 0.03 per cent.
According to the firm, the over-55 category represented 39 per cent of all BTL activity through Commercial Trust last year, with this figure having increased from 35 per cent in 2017.
When looking at purchase-only applications, the over-55 category were responsible for 21.7 per cent of business at Commercial Trust in 2017, rising to 29.7 per cent in 2018.
The firm outlines that in response to the rise in older BTL investors many lenders have increased the maximum age limit at the end of the application.
Commercial Trust chief executive Andrew Turner comments: “Our look at the age demographics for 2018 BTL mortgage activity, suggests that increasing numbers of older people are recognising the potential of BTL investments.
“Our data indicates that many people, reaching retirement, are choosing to invest in bricks and mortar and the rental market, as a means to fund their retirement years.
“Investing in property has the potential to deliver attractive rental yields and achieve capital growth, despite industry changes. I fully expect that the returns fair better than many other forms of investment.”