People aged 55 and over can access as much of their savings as they want from their defined pension contributions under new pension freedom reforms which came into effect on April 6.
This means people can now take a lump sum payment. Although there are tax implications, there are estimates that more than one in 10 people are intending on cashing in their entire pension pot, with 16 per cent planning on reinvesting the cash into property.
The changes to pension rules are expected to result in an increase in buy-to-let landlords. It’s easy to see how this could fuel a continuous cycle of behaviour in the market; young people rent as they try to save enough to get on the property ladder, while the older generation invest in buy-to-let properties supplying the properties to rent.
Alex Chard, managing director at Kingsford Letting said: “As any seasoned landlord knows, managing properties and tenants isn’t always that straightforward. Being responsible for repairs and maintenance, chasing tenants for late payments and managing void properties are just a few of the challenges buy-to-let landlords encounter.
“And the legal responsibilities of landlords are changing all the time. From adhering to the Energy Act 2011 guidelines to ensuring properties meet new safety legislation, landlords need to keep on top of what is required by them and take the necessary steps to make sure they are operating legally and fairly.”
If you are considering expanding your portfolio in 2015 or improving the returns on a buy-to-let you already own, Kingsford Letting’s “Financing Buy to Let” checklist will help make an informed choice. Call 01926 423880.