Property investment on rise in Sipps and Ssas

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Property investment on rise in Sipps and Ssas

Sipp provider Dentons Pensions Management has seen a significant rise in the number of clients wanting to add property to their retirement portfolio.

According to David Fox, director of sales and marketing, the firm has seen “record acquisitions” of properties on behalf of its Sipp and small, self-administered scheme clients.

Data from the company showed that for the three quarters ending September 2015 there were 168 new commercial property clients representing 42 per cent of all new business into the firm.

The company now administers 2,091 properties across its Sipp and Ssas book.

Mr Fox said: “We allow the adviser in conjunction with his client to select his own solicitor and valuer, which helps him maintain professional connections. We will also allow advisers to arrange property insurance, and if required, property managers, although in many cases property can be self managed with us just providing a supervisory function.”

Adviser view

Dale Jannels, managing director of London-based AToM, said: “We are seeing an increasing number of clients looking at investing in properties with money withdrawn from pension pots. As first-time buyers continue to struggle to get on the property ladder, the rental market is likely to remain buoyant for some time to come.

“Investing in property should provide a reasonable income and potentially good capital growth in the longer term. Lenders are seeing this increase in demand and reviewing products to offer mortgage terms in the buy-to-let sector that end a lot later than ‘normal’ retirement ages.”