House prices to soar again as pension changes fuel increase of 30 per cent #CarryGobySeanKellz #FutureGroupNG via @i_amreginaldjr

RADICAL rule changes will see millions of Britons raid their pension pots to invest in property.

The increased freedom in spending pensions has motivated investment in property [GETTY]

An army of so-called “silver investors” will be spurred by new freedoms announced in the Budget this week.

But brokers warned that a rush for mortgages could see house buying reaching unprecedented levels, pushing up property prices by 30 per cent.

The average Scottish home is now worth £160,270, with the UK’s average at £250,000. The 2018. Mortgage expert Dominik ­Lipnicki said: “Without doubt these changes will see more people entering the buy-to-let market.

Time was when those reaching pensionable age would automatically buy an annuity but that’s no longer the case

Dominik ­Lipnicki, mortgage expert

“Time was when those reaching pensionable age would automatically buy an annuity but that’s no longer the case. The game has changed.

“Buy-to-lets have outperformed annuities for years. This has been the fastest growing sector for a while and will continue to be so for the foreseeable future.

“Property prices may well rise but if more people spend their lump sums at the beginning of their retirement and then release the equity in their homes, more properties will come on to the market.

Chancellor George Osborne's Budget plans had a heavy focus on pensions [GETTY]

“Unless the Government gets to grips with building more houses, prices will increase anyway. All things considered, this has to be seen as a positive thing.”

Richard Lambert, chief executive of the National Landlords Association, said the pension changes would make housing “a more financially viable option for providing an income in retirement”.

Estate agents predict the boom will see prices soar by 25 per cent across the country but in hot-spot areas of southern England, such as Bournemouth, Brighton and ­Windsor, the increase is more likely to be 30 per cent.

Soaring prices could hit those looking to take their first step on the property ladder. But many pensioners will now have the cash to help children or grandchildren buy their first home.