Berkeley Square Capital (LONDON) Ltd claim that the UK pension changes could trigger a significant increase in residential property transactions but for most households, this is unlikely to involve the acquisition of an investment property.
But the increase in sales is more likely to come from continued trend of pensioners selling larger properties and properties in prime areas and purchasing smaller properties and properties in cheaper areas in order to release additional equity to help fund their retirement years, according to real estate firm Berkeley Square Capital (LONDON) Ltd.
In a new report it says that there are a number of reasons that property is likely to prove a popular investment choice for those who decide to take control of their pension pots and invest in something other than an annuity.
These include the fact that residential property is generally seen as a less volatile and relatively safe long term investment, when compared to other assets such as equities and can provide a regular rental income.
Also, a strong capital appreciation over the medium to long term is anticipated and property is a tangible asset that people generally feel more comfortable with and understand better than other more complicated investment vehicles.