Granlords Looking To Buy To Let Market
Property market will be boosted by pensioners
The next few months will be very interesting in the housing market as estate agents welcome pensioners that can now spend their pension pots on buying an investment property. As of from the 6th April 2015 pensioners will be able to decide for themselves what they will spend their pension pots on. Instead of being forced to invest their money in annuity policies that gave a poor return each year and which charge excessive fees by the pension industry pensioners will be able to purchase a buy to let or any other type of investment that they see fit.
This is good news for pensioners who will be will be able to buy anything they want and not be at the behest of financial institutions who have been accused of daylight robbery when it comes to pension plans and excessive fees. Pension plans have been seen as a cash cow for financial institutions for long enough and now pensioners can make their own decisions.
The property market is not prepared for this influx of money and it is highly likely that the property market is going to see further house price increases particularly amongst the lower end of the market with flats and small houses being the main staple of the buy to let industry.
Pensioners are going to be able to drive a hard bargain because they will have cash funds available for homeowners that want to move quickly. They will be able to outbid first time buyers who will have a set budget. It is likely to push prices to levels to seen before as the demand for homes of all types increases.
The government is certainly boosting demand for housing but can it build enough homes. If Labour get into power Ed Milliband has said that it will set aside billions of pounds to kick start a social house building revolution but we have heard of of this stuff before. It is not just social housing that the UK needs. It needs more of all types of housing not just council houses.