Greater pension freedom could potentially allow individuals to purchase property with lump sums taken from their savings pots, if there is a perceived benefit in doing so in terms of rental yield and capital growth.

Buy-to-let as a source of retirement income is possible in cases where the total annual rent is more than the total cost of owning and managing the property - and where it provides a strong enough yield even after the cost of capital from withdrawal taxes is taken into account.

This guide explores the pros and cons of buy-to-let, regulation of this part of the industry and making sure your client isn’t using this type of loan to bypass the Mortgage Market Review’s affordability requirements.

Supporting material produced by: the Council of Mortgage Lenders; Chris Maggs, buy-to-let commercial manager of Accord; Bob Young, chief executive of Fleet Mortgages; Dale Jannels, managing director of Atom; and Charles Haresnape, managing director of mortgages and commercial lending at Aldermore.

This guide is sponsored by Aldermore. All editorial is independent.