View more on these topics

RICS reaction to SIPPS

The Royal Institution of Chartered Surveyors has so far found no evidence of a significant interest in the purchase of residential property within self-invested personal pensions.

Chartered surveyors have received only limited enquiries relating to the purchase of residential property within SIPPs.

The restriction that will be placed on how SIPPs are run and maintained, and the lack of flexibility in terms of accessing capital and rental income, means they will not necessarily going to be attractive to all higher-rate tax payers, who will receive the largest tax breaks.

Limits on the annual contribution that can be made to SIPPs funds to that of the yearly salary (to a maximum of 215,000), together with a maximum borrowing limit of 50% of the fund value, mean that only relatively cheap property will initially be access to most potential buyers.

RICS expects a very modest uplift in house prices as a result of SIPPs because of the drawbacks that they present to potential investors.

Recommended

Pink reveals more details of fees assisted campaign

Pink Home Loans fees assisted campaign is available on all branded lending medium to heavy adverse products and a selection of branded lending near prime products.In addition to this, Pink has extended the summer campaign for a limited period and will continue to pay a 1.5% proc fee for medium and heavy adverse cases with […]

C&G reprices premium mortgage rates

From Monday October 3 2005 Cheltenham & Gloucester is repricing the rates on its two year and three year premium fixed-rate mortgages.Nick Hale, sales director at C&G says: “Following the increase in the cost of purchasing funds through the money markets it has been necessary for C&G to review its rates and these new products […]

Britannia launches 2-year fixed rate mortgage

Britannia is launching a new two-year fixed rate mortgage on October 28, offering a rate of 4.29% up to 95% LTV which is a drop of 20 basis points as the previous rate was 4.49%.The initial rate on Britannias two-year discount tracker will also drop on Friday October 28, to 4.35%. The product will track […]

Mortgage approvals up 8.1% in August

Figures released by the Bank of England show that the number of new mortgage approvals for home purchases was 107,000 in August, up 8.1% from 99,000 in July. Compared to a year earlier, mortgage approvals are now 15.1% higher, the first annual increase recorded since June of last year, contrasting with the dramatic fall of […]

Newsletter

News and expert analysis straight to your inbox

Sign up