04.11.08 - £100BN OF PENSION FUNDS NOW ELIGIBLE FOR PROPERTY INVESTMENT
A growing number
of property professionals are looking at selling or building Self Invested
Personal Pensions (SIPPs) compliant property after government changes mean that
some six million people with an estimated £100bn could invest their
underperforming personal pension into this savings type.
“These changes will give more flexibility and
investment choice to people taking an active interest in the management of their
pension fund,” said UK Minister for Pensions Reform Mike O’Brien. “It will also
be easier for individuals to transfer funds between different types of pension
schemes, and to consolidate pension rights in one place.”
Several companies are looking to take advantage of
the changes by working to make their properties SIPPs compliant or looking to
sell this type of stock.
UK-based investment specialist Assetz has also
shaken up its business model and its new division, Assetz International, is now
working to source and package UK and overseas developments for SIPP providers
across Britain. It has also created a new division of Assetz Finance to help
agents sell this property type to investors legally.
“Agents can now tap into the SIPP market as we give
them all the relevant information on a plate,” said Stuart Law, chief executive
of Assetz. “Agents technically can’t sell SIPP property. They can take the
process through to near completion, then it must be handed over to an
Independent Financial Advisor (IFA) which often suggest to the buyer that they
are better putting their money into another asset class. What Assetz have done
is set up an independent, non-competing SIPP compliant service, which gets the
money applied to the sale, we train agents on how to sell SIPP property and we
do all the regulated work to get it over the line, and of course, unlike most
IFAs, are property friendly,” he added.