First-time buyers to "dip into pension" says Housing Secretary

James Brokenshire MP gave a speech at The Policy Exchange think tank in London where he mentioned the possibility of young, first time buyers drawing from their pensions in order to help them get onto the property ladder.

Brokenshire also shared ideas on how to cultivate stronger communities and included other ways of helping people onto the housing ladder.

Former Pensions Minister, Steve Webb said that this would push up house prices and “ruin” retirement for young people, forcing them to work in their “seventies and beyond”.

Mr Brokenshire will call on the next Prime Minister to reform pensions to allow young people to “make the choice for themselves” if they want to spend them on property instead.

In his speech Brokenshire said: “We should be looking at allowing an individual to use part of their pension pot as a deposit on a first-time home purchase.

“We should be changing the necessary regulations to allow this to happen, protecting the integrity of pension investments but allowing lenders to innovate and design new products to bring this opportunity to consumers.”

His full speech can be found here.

 
Sourced from NAEA.

Posted on Thursday, June 6, 2019