National Insurance exemption could spark a silver surge in buy-to-let investment

Tax shift could rebalance the market toward retiree investors
Under proposals put forward for the 2025 Budget, landlords may become liable for a National Insurance charge on rental income. However, those over the State Pension age are currently exempt from paying National Insurance contributions, creating a significant post-tax yield advantage for older investors. 

“While younger landlords are reshaping the market, agencies should not underestimate the resilience and value of older investors,” said Dr Neil Cobbold, Commercial Director at Reapit. “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. 

Advantages for agents 

According to the English Private Landlord Survey 2024, landlords with larger portfolios are both more likely to use an agent and be closer to retirement. The survey found that 77% of landlords with five or more properties were aged 55 or over, and that large-scale landlords were more likely to rely on an agent’s fully managed service. 

Cobbold explained: "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.”