LETTINGS NEWS: Buy to let sector ready for ‘pension boom’


New pension regulations could lead to a boom in the local buy to let market according to research by finance company Direct Line for Business.

It shows that a third of people aged 45 to 64 are considering using their pension pot to buy a property. New rules coming in to effect in April will allow pensioners to ‘cash in’ their pensions and use the funds for alternative investments.

Areas like the south west, with higher than average proportions of older residents, are likely to see the biggest drive towards buy to let.

Those questioned gave three main reasons for plumping for property – its regular income, the increase in people wanting to rent, and the predicted capital appreciation.

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