Half of all retirees in London are planning to use their pension pots to invest in buy-to-let property next year, new research shows.
A Bank of Ireland study shows 29 per cent of retirees nationwide are looking to use new freedoms announced in this year’s Budget to buy property and generate rental income in retirement.
In London the figures are much higher, with 47 per cent looking to shift from pension to property next April.
A further 13 per cent will use a lump sum to pay off the balance on their own mortgage.
In total, half of all Britons who are not landlords are interested in entering buy-to-let within the next two years.
Despite the interest, the Bank of Ireland found 30 per cent of potential landlords did not understand the tax implications of rental income.
Bank of Ireland UK mortgages commercial director Mark Howell says: “Our research has identified a massive knowledge gap in the area of buy to let mortgages, which is particularly concerning as the market is currently experiencing growth.
“It’s important that people seek financial advice on tax matters before making big financial decisions or investments, like buying a property to let.”