01932 950500

 

Local estate agents Aston Mead say that the property is likely to be a popular form of investment, following one of the biggest shake-ups in the UK’s pension system which came into effect on Monday.

From April 6, almost 18.5 million people currently aged 55+ across the UK were given unprecedented access to an estimated £67.5 billion of pension contributions, with the freedom to spend, save or invest their pension as they see fit.

Aston Mead Managing Director Charles Hesse said: “Homes in Surrey and Berkshire are already in the sights of those who are deciding to take control of their pension pots and invest in something other than an annuity.

“The beauty of residential property is that it’s seen as a tangible asset without the complication of other investment vehicles, it can provide a regular rental income and can offer a relatively safe long-term investment compared to equities. Little wonder that people are turning to property now that the pension reforms have kicked in!”

It’s estimated that the number of UK pensioners buying at least one investment property could double, raising house prices and alleviating the current shortage of rental accommodation.

Charles Hesse added: “Even if most households don’t buy an investment property as a result of these changes, we could be about to witness a significant increase in the number of residential property transactions, with pensioners keen to release extra equity to help fund their retirement.

“Of course, buying-to-let is not risk or hassle-free. So it’s absolutely crucial that anyone considering going down this path seeks expert advice in order to understand the tax implications, what returns such properties can deliver, and what they will do if the property stands empty.

“Nevertheless, it’s fair to say that in the long term, property investment is still leagues ahead of any other form of investment return.”

 
 

Website by Supreme Creative Ltd. | Built on Zenario