Housing minister James Brokenshire is expected to propose that young people be allowed to dip into their pension pots to help them fund a deposit for a new home. Mr Brokenshire will suggest changing the rules on pensions to “empower” those trying to take their first step on the property ladder. 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. “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,” he said. However, Alistair McQueen, head of savings and retirement at Aviva, said: “The idea of funding a house deposit by opening a pension addresses one challenge by exacerbating another”.
The Daily Telegraph (02/05/2019) Mortgage Introducer (04/06/2019)