The buy-to-let property market in Kent could soon see a boom, as changes to the pension system set to come into force in April will give retirees the ability to spend their pension pot in one go if they so choose.
Tens of thousands are expected to be invested in property to capitalise on the current high yields being experienced in the buy to let sector. The pension reforms being introduced by the Government in April 2015 will see everyone over 50 being able to draw down their entire pension pot at once.
The popularity of residential property as an investment is growing fast due to the soaring house prices seen in Kent. Property also provides the opportunity for both capital growth and income, so on retirement you could sell the property, hopefully having made a profit, and you would have a bulk sum to put into a pension or live off. Equally, you could continue to rent out the property and live off the income, although to do this the mortgage needs to be paid off.
The pension changes could therefore easily have a dramatic impact on the buy-to-let market on both a countywide and national level. With so many new buyers coming to market this could see a massive demand for entry-level properties with buy-to-let and first time buyers battling it out.
It will be interesting to see what effect the pension reforms may have on the already booming property market.