Pensions  

‘Property purchase via Sipps and Ssas rise’

‘Property purchase via Sipps and Ssas rise’

Xafinity’s self-invested personal pension (Sipp) and small self-administered scheme (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 that Xafinity was also seeing an increasing number of ‘second-hand Sipps’ as financial advisers and their clients sought to change pension providers in the light of increased fees and poor service.

He said: “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 financial adviser 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.”