First-time buyers are being pushed out of the housing market by the rise of ‘granlords’, say experts. A recent buy-to-let boom has been partly driven by retired Britons looking to invest in property. And estate agents say the interest from older investors in property is putting an even greater strain on Britain’s limited housing stock. Retirees have increasingly turned to buy-to-let to get a better return on their savings at a time when banks are offering the worst interest rates on record. First-time buyers are being pushed out of the housing market by the rise of so-called 'granlords' who are looking to invest their pensions in property, experts have warned (file picture) The industry is now predicting that even more ‘granlords’ will buy homes to rent out from April, when reforms make it easier for the over-55s to cash in their pensions. This is likely to drive up prices even further at the lower end of the market, making modest, first-time properties even more unaffordable for young buyers who are trying to take their first step on the property ladder. Miles Shipside, of property website Rightmove, said: ‘While many pension pots may not fund a sufficiently large tax-free lump sum to facilitate a property purchase, for some it will provide enough for a deposit. ‘Agents report a high level of interest from “granlords” – new landlords who are typically first-time, retirement-age, buy-to-let investors.’ David Blythman, of Scottfraser estate agent, Oxfordshire, said: ‘Since the beginning of the year there has been no let-up in demand for properties across Oxfordshire and our investment search division are now receiving a significant uplift in enquiries including many from ‘granlords’ - first time, retirement age, buy-to-let investors diversifying their pension investments. ‘We foresee these buyers having a positive impact on the quality of the private rental sector as they have no intention of squandering their hard earned funds on anything other than the best properties.’ Estate agents say the interest from older investors  is putting an even greater strain on Britain’s limited housing stock (file picture) Britain is in the middle of a buy-to-let boom as middle-income ‘amateur’ landlords invest in property. Thousands of middle-class families fed up with rock-bottom interest rates are making their first foray into the renting market. The value of buy-to-let mortgages on new purchases rose by 34 per cent to £11.6billion between January and November last year. The number of landlords taking out mortgages on new purchases in the UK also grew by 21 per cent to 93,970 between January and November 2014 - with 8,500 handed out every month. Ken Hume, of James Alexander estate agents in Norbury, South West London, said: ‘We’ve had enquiries from a number of older people considering buy-to-let, with interest expressed particularly in smaller flats where yields are higher.’
Recent boom partly driven by retirees wanting better return on savings . Estate agents say it puts greater strain on Britain's limited housing stock . Industry predicts even more will buy modest homes to rent out from April . New reforms will make it easier for over-55s to cash in on their pensions .