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

Letting Agent Talk

The pros and cons of renting to students: is it the right choice for you?

Student properties are no different in term of quality and facilities than any other type of private rental. And although landlords may have to spend a fair amount on setting up and properly maintaining student lets, they can also charge a good market rent. To help you decide whether letting to students might be worthwhile…
Read More →
Finance

Autumn Budget Misses Mark on Housing Reform: UK Rental Market Squeezed by Shortages and Rising Rents

The UK rental market faces mounting pressures, with a recent Rics survey revealing a critical shortage of properties and surging rent prices. Landlord instructions, a key indicator of properties available to rent, fell to a net balance of -29%, marking this the lowest level since 2021. Strong tenant demand is driving rents higher, with 33%…
Read More →
Estate Agent Talk

Save a house deposit faster than ever in THESE areas!

Save a house deposit faster than ever in THESE areas! Aberdeen City in Scotland is named the best place to live if you want to save for a house deposit fast, saving in as little as a year and a half Inverclyde is second, whilst Burnley is third Average salaries and house prices in each…
Read More →
Estate Agent Talk

Finding Your Dream Home: Expert Advice from Camberley’s Top Estate Agents

Finding the right estate agent is crucial when navigating the competitive housing market in Camberley. With local expertise and in-depth market knowledge, these professionals can guide you toward your ideal property, saving you time and effort. Their understanding of the area’s nuances, from property trends to community relationships, positions them as indispensable allies in your…
Read More →
Breaking News

Zoopla reveals most affordable towns in Britain

With the average home valued at nearly four times average household incomes, Zoopla reveals the most affordable towns in Britain   An average property in Britain is valued at 3.8 times the average annual household income (assuming 2 full-time workers) Cumnock in Scotland, is Britain’s most affordable town to buy in 2024 with average property…
Read More →
Software & Tech

The Evolving Nature of Real Estate and Strategies for Agency Success

Real estate agents are used to working with fluid market dynamics. Adapting their sales strategies and responding to new industry demands is almost second nature to most agencies today. However, while making the necessary adjustments when following housing market trends is important, it’s also important for agencies to consider new business innovations that become available…
Read More →