With a huge number of property investors facing obstacles from April this year, it is essential investors consider all options, especially when looking towards retirement income, and using their proposed pension pot to invest in property.

The private rented sector has seen significant growth over the past few years, with rents reaching record amounts, and an increasing amount of people choosing to rent, rather than buy a property. It is no wonder people have invested in buy-to-let properties to secure their future, rather than putting their money into a pension scheme.

Buy-to-let, can be a long-term option for those looking to provide retirement income through property. However, since the 2016 government budget changes, a number of challenges are now being faced.

As of April 2017, the mortgage interest tax relief will be reduced, and from 2021 will be capped at 20 per cent. Regulation within the private rented sector is also set to be introduced under the Deregulation Act 2015. As part of this landlords will be responsible for repairs to their rented properties, and be required to carry out immigration checks on their tenants.

They will also need to be aware of stamp-duty land tax which will affect purchases made after April and include a surcharge of three per cent.
With these new changes taking place, questions are to be raised as to whether relying on property investment for retirement is a viable option as opposed to a more traditional pension.

However, the imminent changes do now appear to have lowered people’s confidence in the sector, as reflected in average rental prices that have remained relatively stagnant across the East Midlands for the last two years. Currently, the average rental amount in the East Midlands is £583 per calendar month (pcm). Across the rest of the UK the average rental value was £888pcm, which is 0.7% higher than the same period last year.

Bruton Knowles is an expert in the property and private rented sector. We are able to offer expertise to landlords and those who want to invest in the buy-to-let market. To find out more about the residential properties available at Bruton Knowles or to get trusted advice about your properties,

For help with all your property matters call Grant Sail on 0115 988 1160 or email This email address is being protected from spambots. You need JavaScript enabled to view it.