The Royal Institution of Chartered Surveyors is predicting an extra 160,000 property purchases following the introduction of self invested personal pensions on April 6 2006.But the report from RICS warns that although regional hotspots could get even hotter, SIPPs will have a minimal impact on most of the market. The report also suggests potential investors watch out for inappropriate financial products and avoid get-rich-quick schemes. RICS forecasts a steady flow rather than a mad rush of property into SIPPs, as the 160,000 extra residential property purchases represent a fraction of the 4,500,000 total transactions forecast, plus the 500,000 new homes expected to be built, in the three years after A-Day. By analysing the pension and savings assets of households, the RICS report identifies who will be in a position to take advantage of the tax breaks on offer. Many potential property pensioners share the profile of existing second home owners – male, higher rate taxpayers aged between 45 and 64 – and are likely already to be exposed to the property market through buy-to-let. The report sounds a cautionary note on the possible mis-selling of property pensions and advises all potential investors to consult a qualified IFA before making any important decision on a financial product. Louis Armstrong, chief executive of RICS, says: “Reports of a mad rush of property into SIPPs are exaggerated. The size of the housing market means demand can be readily absorbed in most areas. “But investors should be selective, watch out for get-rich-quick schemes and take proper professional advice, preferably from a chartered surveyor.”
The latest buy-to-let Confidence Survey from Mortgage Express shows the sector remains strong and landlords are positive about its future. The specialist lending arm of Bradford & Bingley says 87% of landlords are planning to either extend or maintain their property portfolios over the next six months.
The Abbey Residential Property Plan marketed in association with Knight Frank Corporate Finance closes to investment on November 4. This 10-year investment is designed to provide both capital protection and offer investors exposure to the UK residential property market without the risks that come from buying property as an investment. The Plan tracks the Halifax […]
Clydesdale Bank has launched a new product matrix to its broker partners which includes a two-year capped offset mortgage, the first time Clydesdale has offered a mortgage of this type. The new suite of mortgage products include improvements to Clydesdale Banks current traditional and offset tracker products, which have the added benefit of being available […]
An overwhelming 73% of the industry says Mortgage Express should have named and shamed the business development manager found to have been advising brokers how to mis-sell self-cert mortgages. While MEX withheld the name of the individual involved for the sake of their career, it seems brokers take a dim view of anyone or anything […]
Health Shield has launched three new benefits and an important product enhancement for 2015. The new portfolio will appeal to both new and existing members and help employers boost and maintain workplace wellbeing.
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