The ability to unlock cash from pensions, due to be applied next year, could deliver a boost to the housing market and see more parents choose to help their children up on to the first rung of the property ladder, according to KPMG

“Unlocking pensions will enable more parents to lend a helping hand to their children as they look to buy their first home,” said Stephen Barter, Chairman of KPMG’s Real Estate Advisory practice.  “It could also fuel the buy to let market, with people liberating their nest egg to invest in property and benefit from the rental income this would bring to them throughout their retirement.”

“Those who use some of their pension pot in this way clearly need to be mindful of the tax consequences for them, and be satisfied that this is a sensible use of their savings,” said Stephen. “But it will undoubtedly offer much-needed support, through adding further fuel to demand and price pressure at the more affordable end of the housing market.”