Insurance News Archive
Sipps U-turn to have 'no effect on buy-to-let'
The chancellor, Gordon Brown's, decision to block residential property as an investment option for pensions will have "no discernable impact" on the buy-to-let market, according to experts.
In December, the chancellor announced a U-turn on pension rules that would have allowed investment in residential property as part of a self-invested personal pension (Sipp).
It was initially feared that the U-turn would have an impact on the buy-to-let market but recent figures from the Association of Residential Letting Agents (Arla) shows that this may not be the case.
Adrian Turner, chief executive of Arla, commented that buy-to-let landlords are proving themselves to be serious investors, despite all the hype surrounding Sipps.
"They [landlords] are driving the long term financing of the private rented sector. It is precisely what is needed both for the sector and for housing in general," he added.
Nevertheless, research shows that landlords are still confused about the government's plans to introduce mandatory tenancy deposit schemes later this year, with only a quarter admitting they know the details of the scheme.
© Adfero Ltd
31 Mar 2006