While welcoming the chancellor’s Budget announcement, which included the scrapping of compulsory annuity purchases, the managing director of buy-to-let specialist lender Paragon Mortgages said savers should be given even greater freedom to make their own decisions.
Citing research by the firm that revealed that three-quarters of landlords saw their properties as their pensions, he said: “The last Labour government did look at allowing people to include buy-to-let property in their pensions, but this failed in the final analysis to deliver.
“Private rented property could sit well in a personal pension arrangement because it generates a flow of income, has strong defensive qualities and has an excellent track record for producing good returns and we believe it should be included.”
Steven Robinson, director of Bristol-based Clarke Robinson & Co, said: “I think it was wise for the last government to U-turn on allowing residential property into Sipps. I think it would be open to abuse. People have unrealistic expectations regarding property investing.”