Pensioners invest in Buy-to-Let

The buy-to-let sector of the property market remains as strong as ever, new data reveals that the number of buy-to-let deals available to first-time landlords has increased 13 per cent in the last few months.

It is just a few weeks since the relaxtion of rules came into effect concerning changes to how pensioners are able to deal with their own “pension pots” no longer being obliged to take out an annuity, this new freedom which applies to approx 60,000 pensioners means it is very likely that some of their money will be finding its way into buy-to-let investements yielding alot better than a bank or building society with currently low savings rates.

Data from specialist mortgage lender Kensington revealed that 53 per cent of retirement savers said they would consider investing or are already investing in buy-to-let to increase their income in retirement.

Ms Charlotte Nelson, finance expert at Moneyfacts, reportedly said that with the sector lying outside the Mortgage Market Review, it is “unsurprising” that the number of buy-to-let deals has risen to an “all-time high”, she also pointed out that with high rents and mortgage rates at record lows, there is potential for big returns, but this may not be the case forever as the base rate is likely to rise at some point in the future.

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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