BTL sector braces for silver landlord surge

As pension freedom day draws closer, the UK buy-to-let sector is bracing itself for a surge of silver landlords ready to put their pensions into property.

Related topics:  Landlords
Warren Lewis
10th March 2015
OAP

The pension reforms due to come into force on 6 April 2015 will represent the biggest shakeup to the way retirees manage their future for decades.

While nobody can say for sure what the impact of pensions freedom day will be, indications are that around 200,000 individuals are planning to cash in their entire pension pot, according to Hargreaves Lansdown. Some 21% intend to spend their hard earned savings on a holiday, while 13% plan to pay off debts and 12% will use the money for home improvements.

Around 16% plan to reinvest in property, with the UK's already booming buy-to-let market looking like a tempting prospect for many of those who are new to property investment.

The full impact of pensions freedom day will only be known months or even years from now, once the dust has settled, but in the near future, the buy-to-let sector and all those who are a part of it are bracing themselves for a surge in those looking to put their pension into property in order to turn it into pounds.

Ray Withers, Chief Executive of specialist property investment company Property Frontiers,had this to say. “It's excellent news that the UK's pension holders are finally being given the freedom to spend their life savings as they see fit. Too many have been trapped in annuities over the years that mean they have to spend their retirement watching every penny. Now, retirees can choose to make their money work for them however they wish and the UK's buy-to-let sector looks certain to be one of the beneficiaries of the situation.”

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