Will pension annuity changes impact London housing market?

[nickEcave]

I just wondered what people think about the changes which allow pensioners to invest their money as they see fit rather than having to buy an annuity? If I was a younger pensioner I would see the London housing market as a pretty attractive bet over a 20 year period and wonder if this is going to really stoke the by-to-let market and make things even worse for first time buyers.

The costs and aggravation of buy to let vs an annuity? No way, even with current poor rates.

Many annuities die with you, property doesn't.

Houses prices in London are too high now to yield decent rental returns. Rental yields compared to house prices much better in northern cities.

exactly.

and not too bothered if my assets die with me!

If you draw out money, I believe the first 25% can be taken tax free (but it always could anyway) - after that it is taxed at your normal rates, so it would be mad to draw out a large sum in one year, especially if you already have another source of income - anything over about 10k would be taxed. I suspect it may impact on some property markets to some extent but I would be surprised if it made a difference in London TBH.