‘Pension pot’ landlords urged to use caution

‘Pension pot’ landlords urged to use caution

A leading figure in the buy-to-let broker industry has called for would-be ‘pension pot’ landlords to seek advice before committing pension funds to property.

Andrew Turner, chief executive at leading buy-to-let mortgage broker firm Commercial Trust Limited, said: “There has been renewed discussion recently of pension freedoms driving a new generation of potential buy-to-let investors.

I firmly believe that, despite a lot of recent change in the industry, buy-to-let remains a sound investment option. Further investment in buy-to-let properties is excellent news for the industry, the housing market in general and for tenants, particularly at a time when demand for rental properties is currently outstripping supply.

However, any investment strategy needs careful forethought and planning, especially given the changes that the industry has experienced recently and those that are yet to come. I urge anyone new to buy-to-let to seek professional financial and tax advice first.”


Turner’s comments followed the release of a new survey from Retirement Advantage, which underlined the appeal of buy-to-let investment among those approaching retirement age, with many seeing bricks and mortar as a viable way of funding their retirement.

The survey of 1,005 people aged 50 over older, who have not yet retired and have some form of private pension savings, showed that 13% intend to invest in property once they reach retirement – a significant figure that could see an additional 1.3 million buy-to-let landlords in the coming years.

Those surveyed indicated that they perceived buy-to-let to be an attractive method of attaining capital growth on their investment, with 50% looking to receive a regular income from rental properties and 44% aiming to boost their retirement income.

The survey also showed that 36% believe that property is a safer investment than stocks and shares, with 35% feeling it would offer better returns than leaving money in a pension or bank.

We welcome anyone who needs help regarding their buy-to-let mortgage needs to contact us. Interest rates are currently at an all-time low, political instability is influencing global investment markets and there is high demand for properties from tenants. Therefore there is good reason why shrewd people are seeing the appeal of buy-to-let mortgages.

However, there are no guarantees regarding future interest rates or returns from property, pensions, bank accounts or stocks and shares.

Rules introduced by the Government over the past couple of years have also brought significant change to the cost of buy-to-let and landlords have seen enormous taxation upheaval. Additionally, other legislation means there are a number of requirements that landlords have to meet such as the health and safety of their property and a tenant’s right to rent in the UK.

Ultimately buy-to-let investment is a business and whilst there are support services available that can help to simplify property investment it is vital to have a clear picture of landlord obligations.

I would urge anyone interested in investing in buy-to-let to seek appropriate professional advice on all aspects involved.

This would commonly mean speaking to a financial advisor and tax specialist. If you need it a letting agent can help with the day to day running of a rental property (and ensuring you meet all property regulations), and as a specialist buy-to-let broker Commercial Trust can help to identify a mortgage solution  that meets your circumstances and needs.”

Andrew Tully, pensions technical director at Retirement Advantage, added: “The buy-to-let market looks set for a boom fuelled by the pension freedoms and in the process it will create a new generation of landlords.

As a nation, our interest in property remains despite a cooling of the buy-to-let market following the recent tax changes.”

Join our mailing list:

Leave a comment



Latest Comments

Tony Gimple
Tony Gimple 09 Dec 2017

Linking professionalism to limited company borrowing is a flawed concept. Despite S24 etc., limited companies are the most tax inefficient way of running a property business and leave borrowers seriously...

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

It's normal. If you plan to buy a house in one of the most beautiful spots in the country you should pay a high price.

view article
Evelyn Attwood
Evelyn Attwood 01 Dec 2017

I think that the situation will be the same at December.

view article
Scott Garnet
Scott Garnet 06 Nov 2017

If you have a patio or a porch it is important to make sure that any connecting doors are secured. Good advice for sliding glass doors is replacing the panels with storm resistant glass and getting heavier...

view article
richardrawlings
richardrawlings 01 Nov 2017

What has not been mentioned here is the effect of not only higher interest payments, but also that these payments are less likely to be offsettable as a business cost due to the scaling back of mortgage...

view article
Kelvin Lloyd
Kelvin Lloyd 09 Oct 2017

IT is up, to the Planners. If they will only give permission for bungalows on certain (suitable) sites, they will be built.

view article
maggie swift
maggie swift 09 Oct 2017

It's just the beginning of the shocking rise.

view article
maggie swift
maggie swift 09 Oct 2017

I have recently read that the bungalows can provide social housing for elderly residents in London.

view article
zoe glover
zoe glover 05 Oct 2017

Update! Worst company I have ever dealt with. Undervalued a Cambridge property by over 100k, wont take on any evidence of valuation including a RICS valuation done 3 years ago for the very same value...

view article
Paul Edwards
Paul Edwards 27 Sep 2017

Its nonsense articles such as this that make it harder to get clients to realise just how difficult the market is out there. When you see Rightmove and there are more 'price reduced' then 'new' most days...

view article
Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article

Related stories

More articles from Landlords