The Power of the Grey Pound

April 2015 will see changes to pension legislation come into effect allowing lump sums to be transferred into bank accounts for any purpose.

Investment in income-generating property assets are expected to rise as eligible pension-holders seek better rates of return than those achievable via pension funds or annuities.

In spite of some tax liability exposure, the changes will allow millions of savers access to money that was previously locked away and the considerable returns available in the property market will prove too much of an opportunity to miss out on.

Industry experts are forecasting a surge in the UK buy to let property investment market. Investment in income-generating property assets such as buy-to-let and student accommodation, and have become more accessible in recent years meaning that entry levels are now much lower. Income-generating property assets are among the best performing year-on-year and have the added benefit of being a tangible asset with intrinsic value. Investment returns are achieved from capital growth of the property itself and an income is generated from rental.

Hotel rooms and student accommodation have become extremely popular investment vehicles alongside the consistently strong UK buy to let market.

2014 saw the rise of the buy-to-let investor across Europe and the UK. 2015 is set to consolidate growth in this market as entry becomes more accessible to a higher number of smaller investors.

In brief summary, the buy to let market in its various forms is set to be further fuelled by the strength of the ‘Grey Pound’ in 2015.

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