Year: 2015

From the 6^th of April 2015, ‘Pension Reform Day’, new rules will allow those aged over 55 to draw down some or all of their money to invest in options such as a buy to let property. The requirement to buy an annuity will be removed and pension savers will have greater flexibility in accessing their pensions.

Since the birth of the buy-to-let mortgage 18 years ago in 1996, buy-to-let investments have provided average returns that easily outstrip those of other major asset classes.

Every £1,000 invested in an average buy-to-let property purchased with a 75pc loan-to-value (LTV) mortgage in the final quarter of 1996 would have been worth £13,048 by the final quarter of 2013, providing a compound annual return of 16.3pc, according to research by specialist lender Paragon.