First-time buyers are being pushed out of the housing market by the rise of ‘ granlords ’ , say experts . A recent buy-to-let boom has been partly driven by retired Britons looking to invest in property . And estate agents say the interest from older investors in property is putting an even greater strain on Britain ’ s limited housing stock . Retirees have increasingly turned to buy-to-let to get a better return on their savings at a time when banks are offering the worst interest rates on record . First-time buyers are being pushed out of the housing market by the rise of so-called 'granlords ' who are looking to invest their pensions in property , experts have warned ( file picture ) The industry is now predicting that even more ‘ granlords ’ will buy homes to rent out from April , when reforms make it easier for the over-55s to cash in their pensions . This is likely to drive up prices even further at the lower end of the market , making modest , first-time properties even more unaffordable for young buyers who are trying to take their first step on the property ladder . Miles Shipside , of property website Rightmove , said : ‘ While many pension pots may not fund a sufficiently large tax-free lump sum to facilitate a property purchase , for some it will provide enough for a deposit . ‘ Agents report a high level of interest from “ granlords ” – new landlords who are typically first-time , retirement-age , buy-to-let investors. ’ David Blythman , of Scottfraser estate agent , Oxfordshire , said : ‘ Since the beginning of the year there has been no let-up in demand for properties across Oxfordshire and our investment search division are now receiving a significant uplift in enquiries including many from ‘ granlords ’ - first time , retirement age , buy-to-let investors diversifying their pension investments . ‘ We foresee these buyers having a positive impact on the quality of the private rental sector as they have no intention of squandering their hard earned funds on anything other than the best properties. ’ Estate agents say the interest from older investors is putting an even greater strain on Britain ’ s limited housing stock ( file picture ) Britain is in the middle of a buy-to-let boom as middle-income ‘ amateur ’ landlords invest in property . Thousands of middle-class families fed up with rock-bottom interest rates are making their first foray into the renting market . The value of buy-to-let mortgages on new purchases rose by 34 per cent to £11.6billion between January and November last year . The number of landlords taking out mortgages on new purchases in the UK also grew by 21 per cent to 93,970 between January and November 2014 - with 8,500 handed out every month . Ken Hume , of James Alexander estate agents in Norbury , South West London , said : ‘ We ’ ve had enquiries from a number of older people considering buy-to-let , with interest expressed particularly in smaller flats where yields are higher . ’
Recent boom partly driven by retirees wanting better return on savings . Estate agents say it puts greater strain on South West London 's limited housing stock . Industry predicts even more will buy modest homes to rent out from April . New reforms will make it easier for over-55s to cash in on their pensions .