Property sales in Malta could be boosted by UK pensioners seeking to cash in their entire pension following radical reforms that kicked in yesterday, according to estate agents.

Dubbed ‘pension freedom day’, those aged 55 or over in the UK may now cash in their entire pension savings. Until last month, retirees handed over their accumulated pension to a company to buy an annuity and they would then receive a set monthly income.

The changes have raised fears that pensioners may go on a spending spree or fall victim to investment fraudsters. However, the reform is welcome news for property agents in Malta who expect the reform to boost investment in property, especially since the exchange rate is favourable for the British pound, Mark Trapani, marketing executive at Engel and Völkers Sara Grech said.

Nick Bilocca of Frank Salt Real Estate said the agency is expecting a rise in investment in property in Malta as UK retirees would have more immediate disposable income. 

More in Times of Malta and the e-paper on timesofmalta.com.