A new wave of investors for Buy-to-let.

March 13, 2015

For a long time now Brits have been infatuated with the buy to let property as an investment for their future, the idea of buying a property and getting somebody else to cover the mortgage by paying you rent every month is simply irresistible. Buy to let has not only been instrumental in supporting the overall property market especially during the downturns, but also in fuelling the runaway UK house price growth of the last 20 years, this in turn has flattened young people’s hopes of getting on the property ladder and forced them into rented accomodation.

A group of people who have been able to benefit from this demand for rented accomodation are retirees with a decent sized savings pot that was earning very little on deposit in bank or building society, they have gone for buy to let which offered them a return of 7% to 8% annual return on their investment, most were very happy to be in bricks and mortar as an investement. Come April the same and new retirees will see changes to the pension rules, infact they will no longer have to buy an annuity, they will take control of their own pension pot,the radical reforms will allow the over-55s to draw cash from their pension from 6 April, and spend it on whatever they like.

This will probably see a tsunami of pension cash flowing into the UK housing market, one in three people heading for retirement are now considering purchasing a buy-to-let property according to a recent survey by Platinum Property Partners. this could amount to a further 80,000 new investors a year as per Property solicitors NeglectAssist, this would be on top of the already 1.63 million existing buy-to-let investors, whose numbers rose 8% last year.

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.

You May Also Enjoy

Breaking News

Almost one in five first-time buyers seeking max 60% LTV mortgages

Almost one in three (31%) first-time buyers are opting for 90% LTV mortgages, and a further 10% are looking at 95% LTV options. This hints at many first-time buyers relying on 5-10% deposits. This translates to £13,650 to £27,300 at the average UK house price of £272,995 [source]. Almost one in five (17%) first-time buyers…
Read More →
Breaking News

Property values bounce back in October

The latest Halifax Property Index shows that: – House prices rose by +0.6% in October vs a fall of -0.3% in September Fourth time in last five months that the average price has increased Average property price now £299,862, edging up to a new record high Annual rate of growth rises to +1.9% (up from…
Read More →
Breaking News

UK house prices rise at fastest pace since January

House prices rose by +0.6% in October vs a fall of -0.3% in September Fourth time in last five months that the average price has increased Average property price now £299,862, edging up to a new record high Annual rate of growth rises to +1.9% (up from +1.3% in September) Mortgage approvals reach highest level…
Read More →
Rightmove logo
Breaking News

Rightmove accelerates AI product delivery to surface more potential sellers and buyers for agents

The UK’s largest property platform Rightmove is today announcing a series of AI developments for consumers and partners, to help agents reach more potential sellers, buyers and renters. There are currently 27 AI initiatives in development, as Rightmove makes AI technology central to its platform to benefit partners and home-movers. Four new developments – two…
Read More →
Estate Agent Talk

How to Pick the Best Option for your Business’ Broadband

Having a dependable broadband connection is crucial for any business. Whether you run a small office or a larger company, a slow or unstable connection can disrupt work, affect communication, and reduce productivity. Picking the right broadband package does not have to be complicated, but it does require careful thought about your business’s specific needs…
Read More →
bank of england interest rate
Breaking News

Bank of England Hold’s Interest Rates at 4%

With the Bank of England holding Interest Rates at 4%, here are some thoughts from the Industry. Matt Smith, Rightmove’s mortgages expert: “Ahead of one of the most widely anticipated and discussed Autumn Budgets of recent times, it was unlikely the Bank would go for another interest rate cut so close to the announcement and…
Read More →