The government’s 2014 pension freedom legislation gave people over the age of 55 access to their pensions pot. When the freedoms were introduced, this led to speculation that many elderly people would use their pension lump sum to invest in the buy to let property market. According to financial experts quoted in an FTAdviser.com article from November 2017, however, this has not happened.

A financial masterclass held in London on November 15 discussed how mortgage advisors and brokers can guide people over 55 on using their pension as a deposit for a commercial mortgage for buy-to-let investments.

The panel of advisors at the masterclass said that many people over the age of 55 are using their pension savings for cash purchases and to help their children buy their first home rather than investing the money.

People investing in buy-to-let property are often using their pension savings to make cash purchases instead of applying for commercial mortgages.

Although many mortgage advisors at the masterclass had received enquiries from people wanting to use their pension funds for buy-to-let investments, many felt that government regulations were stifling the market. There are a range of commercial mortgages available for buy-to-let properties at competitive interest rates, but mortgage advisors often find it difficult to convince people that buy-to-let is still a good investment where reasonable incomes can be achieved.

Some attendees of the masterclass felt that, in the future, there will be mainly professional landlords with large portfolios rather that individuals purchasing one or two properties.