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BTL set for wave of Sipp sales

Two-thirds of buy-to-let mortgage intermediaries believe allowing residential property in Sipps will boost the market, according to Mortgage Trust.

Its September BTL intermediary forecast shows 65 per cent expect A-Day to strengthen the sector, leading to an average uplift in business volumes of 10.6 per cent. But 35 per cent believe the potential effect has been exaggerated.

The research polls a selection of specialist mortgage lender’s brokers each month, shows 71 per cent expect to advise on Sipp BTL mortgages when the new rules come into effect next April and 47 per cent intend to team up with a pension adviser.

Mortgage Trust marketing manager Nicola Severn says: “Our forecast shows that the recent interest-rate cut has boosted brokers’ hopes for the sector. It also offers an insight into buy-to-let intermediaries’ views on the pension reforms and reveals that although there is a need for greater clarification around the rules, the ability to place residential prop- erty in a Sipp will undoubt- edly provide a boost to the buy-to-let industry.”

Prosperity Wealth Management adviser Martin O’Reilly says: “The buy-to-let market will remain strong and continue to grow and the Sipp changes will serve to increase demand and drive up market values.”

But Mortgage Talk managing director Andrew Frankish says “Placing rental property in a pension scheme will only have an appeal to a limited number of people, namely those who have considerable pension funds.”

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