As the Housing Secretary calls on the government to allow first-time buyers to access their pension funds to help fund a deposit on a house, the Department for Work and Pensions (DWP) argue against the proposal.
Speaking at a recent policy event, Housing and Communities Secretary James Brokenshire stated: “We should be looking at allowing an individual to use part of their pension pot as a deposit on a first-time home purchase”, claiming that being able to use a deposit could be a “genuine route” into home ownership. It has been reported however, that the Department of Work and Pensions (DWP) has complained to the government about the proposal, due to the “risky” nature of the policy.
We have already seen economists issuing warnings after pension freedoms have resulted in increased withdrawals, so while allowing young people to use their pensions for housing deposits could help more people get on the housing ladder, it could result in the same people struggling in old age. If you would like help and advice on purchasing your first house, or saving into a pension, please get in touch. Our experienced advisers will be pleased to discuss your requirements with you.