Granlords To Enter The Property Market In April
There will be a new breed of buy entering the property market in April. So called granlords (retirees now able to spend their pension pots on whatever they want) are already registering with estate agents and will be competing directly with first time buyers and other buy to let landlords.
The difference though is that granlords will have cash to buy these properties and will not require funding to complete these property transactions. This will be a cause for concern for many first time buyers who are already having to endure record house prices over the last 12 months. This looks unlikely to ease as the scramble for homes increases.
A number of older buyers are already hitting the estate agents on the high streets looking to invest their pension pots in flats and smaller units that provide a better yield. This will also be good news for house builders who may have struggled recently to sell their new flats particularly as the Bank Of England changed mortgage rules last year making it harder for first time buyers to get on the housing ladder.This welcome influx of buyers with access to billions of pounds will shore up the market again and will help boost prices.
There was a lull in the housing market last year as buyers struggled to get a loan. This caused a slight dip in prices but this has already been reversed as the number of buyers has increased in the first three months of this year. House prices have already increased this year and there is now concern that the price of a home for first time buyers will be pushed further out of reach particularly as more retirees enter the market.