Pensions  

Surge in property purchase through Sipps and Ssas

Surge in property purchase through Sipps and Ssas

Xafinity Sipp and Ssas has reported a 25 per cent increase in commercial property investment.

The total value of these properties was £40m, an increase from £30m in 2014.

Different property types have been included, from retail shops costing £50,000 to much larger properties costing more than £1m

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The average property had a value of £250,000 in Sipps and £340,000 in Ssases.

Jeff Steedman, head of business development for Sipp and Ssas at Xafinity, said: “We continue to see more and more of the great British public investing in commercial property up and down the country.

“Putting property into a pension is an excellent tax efficient way for small and medium sized enterprises to grow their pension funds for retirement.

“With stock markets once again in turmoil, most business owners and the self-employed see bricks and mortar as a long term solid core investment for their pensions.

“And more than 70 per cent of our clients are ‘owner occupiers’, so their businesses are the tenants giving them great long-term security. The rental income alone can provide excellent growth for the pension.”

Mr Steedman added Xafinity is also seeing an increasing number of ‘second hand Sipps’ as financial advisers and their clients seek to change pension’s provider in light of increased fees and poor service.

He said: “In fact we have designed and launched our property special offer to subsidise the costs of moving provider and help these people make a fresh start.”

Steven Robinson, managing director of Bristol-based Clarke Robinson, said: “I have seen more enquiries about property.

“I think the market has got people jittery and property is one of the few asset classes that has been going up.”