Pension or Buy-to-let

With the launch of the pension freedoms in April this year people with good sized pension funds now have a wealth of new opportunities for investment. For some the ability to cash in their pension and withdraw a lump sum allows them to consider investing in property such as buy-to-let. The booming rental market makes this option very attractive and almost fool- proof, but is it?

Buy-to-lets and how they have grown

We all know how the buy-to-let market has grown over the last 10 years and nothing seems to slow it down. More existing landlords and indeed new ones are buying properties to convert to this very lucrative market. A very interesting report has just been released with some astounding facts and figures, below are the highlights.

Rents Hit a New High

Average rents across the UK have again hit new highs, we reported in June increases and the same has happened again in July. The average monthly rent has now risen from £790 per month to £804 these rises represent the biggest monthly increases since 2009. Stunning figures indeed, the question is how long can this gone on?

One in five landlords will increase portfolios

It is very clear to us that all the recent bad news regarding tax and interest rates has not in any shape or form dampened the landlord’s enthusiasm. In fact a recent poll showed that one in five landlords are looking to increase their portfolios within the next year. The demand for good quality rental property increased again last month, a local estate agent in Kent said “if the rental property is in good condition it won’t be on the market for long I can assure you”.