Mortgage Industry News

← Back

Become a landlord to bolster your pension

Date: Thu, 15 Sep 2005

The number of British homeowners set to become landlords is expected to surge in the next 12 months following changes to the pensions market.

Reforms that will allow private investors to include residential property in self-invested personal pensions (Sipps) should boost the buy-to-let market by as much as 10.6 per cent, the September buy-to-let forecast from Mortgage Trust suggests.

Nicola Severn, marketing manager at Mortgage Trust, said: "Although there is a need for greater clarification around the rules, the ability to place residential property in a Sipp will undoubtedly provide a boost to the buy-to-let industry."

And following A-Day, as the day when these changes take place is known, research has revealed that seven out of ten intermediaries plan to advise on Sipps buy-to-let mortgages, and almost half plan to team up with a pensions adviser.

However, caution has been expressed in some quarters. Andrew Frankish of Mortgage Talk, warned: "Place rental property in a pension scheme will only appeal to a limited number, namely those who have considerable pension funds at present."






© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.