Pensioners boost buy-to-let market
A property expert has predicted that the buy-to-let market will get a boost from pensioners looking for alternative investments.
After the recent Budget announcement revealed plans that will allow pensioners to withdraw money directly rather than being forced to buy an annuity, Head of Residential Property at Napthens solicitors, Sarah Barnes, foresees the buy-to-let property market receiving a shot of new investment.
Ms. Barnes also predicts that the first-time-buyer market could see a rise from the new pension regulations as grandparents offer to help children or grandchildren to get on to the property market.
She said: ‘The buy-to-let market has been a successful investment for many in recent years, and this latest announcement comes as prices are on the rise meaning it could be even more attractive.
‘Recent figures from the Halifax show that prices increased by 7.9 per cent between December 2013 and February 2014 compared to the same period last year. The average price in the North West was up more than 10 per cent.
‘The Help to Buy scheme has also worked to aid buyers who are looking to step onto the property ladder.
‘I would expect to see the market continue to improve as pensioners begin to look at alternative investment strategies for themselves, and also as they look to lend or gift money to younger relatives to assist them in purchases.
‘The only danger is that the market improves too quickly — we are looking for a real, sustainable improvement, not a short-term bubble.’
Napthens Solicitors is based in Lancashire with five different offices and provides wide-ranging legal services to businesses and individuals.