You are here: Home - Retirement -

SIPP changes could lead to abuse

0
Written by:
10/09/2012
A pensions specialist is challenging calls from a Conservative councillor to lifts restrictions on residential property investment in SIPPs, stating some issues must be "carefully thrashed out" first.

Lisa Webster, a technical consultant at Hornbuckle Mitchell, said the move, proposed by councillor John Moss last week, could be a risk for some investors.

Writing on the ConservativeHome website, Moss – who co-authored a report titled ‘Principles for Social Housing Reform’ in 2009 – said that allowing SIPP savers to invest in residential property would boost the rental housing market.

Although Webster accepts that allowing the residential property investment could boost pension savings, she said there are many grey areas that would “need to be carefully thrashed out” before the restrictions are lifted.

She said: “John Moss mentions on the website that limiting investment to ‘newly-built property’ would fillip the housing sector, but that this would require greater definition. Would this include a house that is two years old but has remained empty or one that has been recently renovated?”

“A further area of concern would be personal use, especially with property bought for holiday lets. It would be extremely difficult to vet the use of these properties, and I believe there’s much scope for misuse.

“Opening up the SIPP market to residential property would likely result in many pension investors placing a large proportion of their pension pot into a property which could prove a risky move if their home is their main non-pension asset.

“There are many areas that need to be carefully thought through before this wish could become a reality,” she added. 

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Ex-cons reveal exactly what would stop them breaking into your car and home

With four in ten thefts committed by opportunists, ex-cons reveal what security devices and factors would stop...
Ex-cons reveal exactly what would stop them breaking into your car and home

Woodford’s new income fund drops out of top traded list

Star manager Neil Woodford’s Income Focus fund has dropped out of a platform’s top traded list, just five mont...
Woodford’s new income fund drops out of top traded list

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.
Tesco expected to post significant write-offs

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

Tesco expected to post significant write-offs

Tesco is predicted to unveil the biggest loss in its 100-year history, according to analysts.

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
2204286-rp-pensions
9.9m unaware of pension changes

Over half of all UK workers are completely unaware of the upcoming changes that will be bought on from the...

Close