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Disappointment at government U-turn on SIPPs

Following the chancellors pre-Budget Report, residential investment specialist Vivacity says it’s disappointed in the U-turn on including residential properties in self invested personal pensions.

Simon Halls, managing director of Vivacity, says: While we had always shared some concerns over the inclusion of overseas property and second homes as a suitable asset class for pension investment, the decision to prevent direct ownership of residential investment property seems a remarkable turn around from the previous treasury position.

“It is frustrating for all those operating in both the financial services industry and the residential investment industry who have invested significant resources in the run up to A Day.

However, Vivacity has always maintained this was never likely to be a niche market and some of the estimates as to volume of acquisitions seemed wildly exaggerated. We are still seeing good levels of interest from investors prepared to take a mid to long-term view on residential property.

“Many thousands of people have invested in the residential market over the past decade without the tax efficient benefits of the pension environment and the long-term fundamentals of this asset class remain very strong.

Vivacity remains upbeat about the continued overall viability of the buy to let market, claiming the future looks bright for Real Estate Investment Trust.

Halls says: It was pleasing to see a further move toward the creation of REITs and although there is much further detail to be announced, this tax efficient investment vehicle is likely to offer significant investment opportunities for both corporate and individual investors in the residential market.


BSA backs good cause proposals

In the pre-Budget Report the chancellor announced further details on plans to give dormant account monies to good causes. These proposals were first mooted in the 2004 budget and since then the industry has held constructive discussions with the Treasury on a number of complex issues. Adrian Coles, director-general of the Building Societies Association, says: […]

Pre-Budget 2005: Brownfield sites targeted for affordable housing

The government has today revealed it’s looking to target brownfield sites to create more affordable housing.New planning guidelines will be implemented, following representations from the Confederacy of British Industry, the Town and Country Planning Association as well as Shelter. The aim in particular is to build houses that young couples can afford and provide land […]

Huntswood appointment

Huntswood has appointed Dan Thomas as sales director. Huntswood provides consulting and customer services solutions, specialising in regulation and risk, performance consulting, training and business process outsourcing.


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