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.”
Adviser view
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.”
