Changes In Pension Rules Open Up Opportunities In Buy-To-Let

buy to let property pension

Independent residential sales and letting agency, Linley & Simpson, has built up one of Yorkshire’s largest portfolio of managed rental properties since it launched 18 years ago.

Director Will Linley said the new financial freedoms had opened up unprecedented opportunities for a “new breed” of property investor.

“With interest rates for savers still hovering around an all-time low, it is easy to see why – the annual yield on a buy-to-let property is 4.1% nationally,” he said. “And we are witnessing an average rate of return of 5.7% here in Yorkshire.

“This outperformance of other investment options does not include any increase in the capital investment into your property, with some homes appreciating by as much as 17 per cent over the past 12 months.

“We were braced for a surge in interest among older people wanting to explore buy-to-let options - but the actual numbers have surpassed all our expectations.

“Low interest rates and easier access to funding has heralded a resurgence in the buy-to-let market generally in recent months – and these changes to pension rules are adding further impetus.

“As many as one-in-four investment inquiries we now receive are from savers over-55 looking to take advantage of ‘A-day’ – and we expect this ratio to increase in the weeks to come.

“And it’s not just Yorkshire savers looking to invest here – we’ve had inquiries from as far away as London, Wales and even Hong Kong from people who view the county as an ideal place for their Pound of savings to go as far as possible.

“The Chancellor’s vote of confidence in Yorkshire in the recent Budget, singling us out as an excellent place to live and work, has added to its growing profile and magnetism

“Some investors are acting as ‘the Bank of Mum and Dad’ to give their children a step up the property ladder, while others are using the new rules as a cash-efficient way of helping their family through their university years.

“Yet whatever the different drivers for investing in residential property, they each share the fact that this is an investment opportunity which continues to outperform other assets.”

To meet this spike in demand, Linley & Simpson has launched a dedicated buy-to-let service across all its eleven branches – York, Harrogate, Ripon, Ilkley, Wetherby, Saltaire, Wakefield, Horsforth, Roundhay, Leeds city centre and our new branch in Chapel Allerton.

The service is designed to guide investors through what can be a complex and confusing process as smoothly as possible – from identifying the right property and letting it to maximum rental potential; through to providing tax and mortgage advice through a bank of finance sector specialists

The scale of interest is also signalled by the company’s decision to launch a new ‘buy-to-let’ feature to its website, which for the first time enables pension investors to search solely for properties that Linley & Simpson has already vetted to be investment opportunities

Mr Linley added: “In common with the national trend, we are finding that the main reason many savvy Yorkshire investors want to secure buy-to-let property investments is because demand for rental properties is soaring. In many areas, it is outstripping supply.

“This shortage is prompted by two factors - many would-be first-time buyers are still unable to meet mortgage requirements, and also the millennial generation is more likely to choose rental accommodation over purchasing than any other past generation.

“The new freedoms will go some way to injecting much-needed extra capacity into the rental market, as well as giving another fillip to the sales side and building on the upturn that it has experienced over the past 12 months.”

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