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.