Pension Changes – A Boon For Agents?

With legislation enabling us to draw down our pensions in one lump sum coming into effect from April this year, letting agents should expect the market to be flooded by a wealth of new buy to let landlords from the silver sector. And this dad’s army of mature new landlords are set to offer high street estate agents a golden opportunity.
Vastly different from the portfolio property player, who may have multiple properties under his belt, those who choose to cash in their pension pot for property are smaller scale investors more likely to purchase a single house or flat. But there may be thousands of them.
Of the estimated 200,000 intending to cash in their lump sum this year alone, 32,000 are planning to buy property, according to research by Ipsos Mori, meaning that those buying on the smaller scale will still make a big impact. And experts predict these figures will rise.
While the traditional buy to let landlord may be playing a high stakes game of property monopoly, those who are trading their pensions for property are doing so because they want to make an investment that’s as safe as… well, houses. And with interest rates on savings likely to stay low long term, getting into letting may be the best way for them to make their money work for them.
These new entrants to the rental market from the older generation could be just the rental market needs to rejuvenate, as their hands off approach lends itself to the complete service the traditional letting agent offers. Rather than just relying on an agent to find them a tenant, we predict they will be keen to have their properties managed as well, as well as being open to any other value add options their estate agent can offer them.
As relative newcomers to the property game, they also recognise that they will benefit from any additional insider advice on both buying and letting that an experienced agent can offer.
Likely to treat their new buy to let properties as an alternative type of piggy bank, those pouring their pensions into bricks and mortar will be seeking a slow but steady return on the property they’ve purchased, as well as hoping that its value will increase, as their mortgage decreases.
Remember, however, buying a house at any age is a huge investment and never more so than when you’re sinking the savings for your retirement into it. Estate agents should be prepared for a little extra hand holding for this new market entrant, but also be reassured that for them – like the very clients they’re handling, if they manage the situation well – the returns could be huge.

Alex Evans

You May Also Enjoy

Breaking News

Housing sales end 2024 on a high, but buyers more cautious about how much to pay for homes as mortgage rates drift higher

Buyers and sellers returned to the market over 2024 building a sales pipeline 30 per cent larger than a year ago with 283,000 homes worth £104bn progressing to a sale in 2025. This is the largest end of year total value for four years. House prices have returned to growth with the average house price…
Read More
Breaking News

£21 million to live on UK’s most expensive street

· Knightsbridge in London now the priciest UK street · The UK’s 10 most expensive streets all in the capital, with an average price tag of £16.5 million · East Road in Weybridge the most expensive address outside of London · Priciest UK properties are 60 times more than a typical home Lloyds has revealed…
Read More
Breaking News

Breaking Property News 20/12/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Why estate and letting agents must embrace innovative technology in 2025   As we step into 2025, the UK property market continues to shift, and estate agents face mounting pressure to meet the evolving expectations of buyers and sellers. The days when static images sufficed…
Read More
Breaking News

Breaking Property News 19/12/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   High street Auctions’ initiative launches to revive Britain’s town centres   This month the UK Government rolls out its highly anticipated ‘High Street Auctions’ scheme, a flagship measure of the Levelling Up and Regeneration Act 2023. This initiative grants local authorities the power to take…
Read More
Estate Agent Talk

Moving Up In The World: Finding Your Dream Home

Finding your dream home is one of life’s most exciting and transformative experiences. Whether you’re looking to upsize, relocate, or finally purchase that ideal property you’ve always envisioned, the journey is both thrilling and filled with important decisions. As you embark on this path, it’s essential to plan carefully, consider your priorities, and approach the…
Read More
new build home fronts
Breaking News

These cities are the keenest to move house in 2025

Bournemouth is the keenest area in the UK to move home, with 38,132 average monthly searches for moving-related topics per 100,000 residents. Plymouth is second, with 35,198 average monthly searches for moving, and Birmingham is third, with 35,181. Derry is the least keen area to move house, with only 3,170 average monthly searches related to…
Read More