Property expected to fund retirement for many

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As many as 40 per cent of the British adult population are expecting property to contribute the most towards their retirement, despite a slowing housing market in many parts of the country.

That is according to new research from Alliance Trust, which revealed that an increasing number of landlords are investing into the lettings market for long-term gains.

While confidence in the influence of property on retirement income rose to 43 per cent, from 31 per cent last year, faith in company pensions fell from 40 per cent to 36 per cent. Confidence concerning personal pensions and expected windfalls displayed minimal increases of two per cent and one per cent respectively.

Hyman Wolanski, head of pensions at Alliance Trust, said: "There has been a tremendous growth in house prices over the last decade but, as we see initial signs of the residential property market cooling down, it is important that people don't rely solely on their home to fund their retirement.

"For those who want to invest their pension fund in property there are plenty of collective vehicles available for this purpose, including some that invest in residential property."

Latest figures from the Council of Mortgage Lenders revealed that, although house prices are cooling, the buy-to-let market is booming, with higher interest rates fuelling tenant demand and rental yields at a solid six per cent.

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