A lot of elders are able to extract funds from pension rather than buying annuity.
A new wave of cash is likely to flow into the buy-to-let market once the elders (over 55s) are free to withdraw funds from their pension and spend or invest the money away rather than buying an annuity.
Research study shows that when this new autonomy were first stated last autumn, about 47 percent of entitled Londoners said that they would think about shifting money from pensions into the BTL scheme.
Now that the opening thrill has died down a bit, there is no doubt that countless of pensioners will be fascinated by the opportunity presented by BTL for capital growth and income enhancement.
The Council for Mortgage Lenders has already seen fast growth and expansion, revealing a figure of 23 percent boost in the number of BTL mortgages since 2014. Several mortgage companies are now offering ever more attractive terms as well.
Many anticipate that the largest demand would come from properties at the lower end of the market, where yields are usually high; something that would draw older people seeking for a more stable income source.
There is a slight hesitation that the new pension autonomy makes good news for both existing BTL investors and for the pension pot holders, yet we have already witnessed a rapid boost of interest.
High and dependable rental demand is significantly important and research shows that London do better than all other places in that matter.
That is why, for all those thinking of moving into Buy-To-Let scheme for the first time; it is vital to get the best possible advice and to always keep a cool head.