Hunters Managing Director, Kevin Hollinrake comments;
"The extension to the Help to Buy scheme was very welcome in last weeks Budget, but the biggest news for the housing market came in the form of future changes to pensions. The chancellor made the shock announcement that new pensioners would no longer be forced into buying an annuity (an insurance policy that provides a fixed rate of return for the rest of the savers lifetime) but instead could choose to draw down the full amount of their pension pot and invest in wherever they choose. Many will feel that buying a buy to let property is a tangible investment, provides solid income return and the potential for capital growth and, unlike an annuity, it can be passed onto their children. We believe that this will help underpin the property market for many years to come.
Of course, the Government will also be the winners as some of the money will be taxed upon draw-down, probably at their prevailing income tax rate. The losers seem to be the annuity providers, some of which have seen their share price halve since the announcement.
For more information, we would strongly recommend speaking to your financial adviser."
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