Baby Boomer pensioners set to squeeze first time buyers

April’s changes to pensions rules are already resulting in regular calls and visits to our offices from a generation of ‘Baby-Boomers’ looking to shift their pension pots into property – A “win” for them, with better annual returns and opportunity for capital growth. A “win” for property owners looking to sell and possibly even a “win” for tenants, with the prospect of competitive rents and a new breed of caring landlords – But maybe not such good news for first time buyers looking to get onto the property ladder, who may just be squeezed-out by Grannies and Grandads using their pensions to bankroll their property purchases.

This new generation of buy-to-let investor is likely to become a permanent feature of the local property market, as Exeter is seen – not just by local people- as a “Hot Spot” for residential property investment.

The resulting effect of this increased demand is likely to see prices edge-up for City centre apartments and smaller two and three bedroom homes in the more popular addresses – both in Exeter and within close commute.

Looking at the bigger picture, as some of the more ambitious or ‘property-savvy’ silver-haired buyers look to use their cash lump-sums as deposits or to expand their property portfolio, many will be attracted by very competitive rates in the 40 to 50 percent Loan to Value (LTV) Buy-To-Let mortgage market. The fear for first time buyers is that after years of trying to attract them, lenders heads may be turned – seeing these new mature borrowers as a very safe bet.

For our part, our busy Buy-to-Let team are already working hard helping advise many such people where and what to buy and our in-house Mortgage and Wealth Management Advisers are expecting to be very busy in the coming months.

IF YOU WOULD LIKE ADVICE ON WHAT TO BUY AND WHERE PLEASE CALL JENNI BOWDEN OR NATALIE GRICE on 01392427500