Older landlords could soon become the unexpected winners of forthcoming tax changes, as proposals to introduce National Insurance on rental income highlight a potential advantage for investors of state pension age.

Under plans being considered for the 2025 Budget, landlords may face National Insurance charges on their rental earnings. However, those above state pension age would remain exempt, giving them a significant post-tax yield advantage over younger investors.

Reapit, the global property technology firm, believes this could lead to renewed investment among older landlords and reshape the buy-to-let market in their favour.

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.”

The shift could rebalance the market towards retiree investors, particularly as the financial advantages compound existing trends. According to the English Private Landlord Survey 2024, 77% of landlords with five or more properties are aged 55 or above, and larger portfolio holders are significantly more likely to use a letting agent’s fully managed service.

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.”

He said that the agencies best placed to capitalise would be those with a broad geographic reach and integrated sales and lettings operations. “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.”

While the full details of the government’s proposals are yet to emerge, the potential for a “silver surge” in buy-to-let activity could provide a new source of business for sales and lettings agents alike, as older investors look to maximise returns before any further tax changes are introduced.