The Sipp property purchase market could be worth 10bn after A-day and provide a 5 per cent boost to the housing market, according to new research from Hargreaves Lansdown.The research, which surveyed 614 members of the public and 180 Hargreaves Landsown Sipp investors, shows that 37 per cent of the current 140,000 Sipp investors in the UK are interested in using their Sipp for property purchase once the new simplified pension regime takes effect next April. With the average anticip-ated value of a Sipp property purchase standing at 195,000, this would equate to a 10bn demand for property and a 5 per cent boost for the UK housing market. Eighty-five per cent of Sipp investors will buy property in the UK, according to the research, with 79 per cent of Sipp property investors planning to invest in a buy-to-let property and 42 per cent in a holiday home. Just 14 per cent are planning to put their main residence in their Sipp. Spain and France are the most popular targets for the 35 per cent of investors looking to invest in overseas property followed by a surprisingly diverse selection of countries, including Dubai and Israel. Of those planning to buy a property, 47 per cent are planning to increase their pension contributions specifically to buy their property and 75 per cent plan to borrow within their Sipp to finance their property purchase. Hargreaves Lansdown head of research Tom McPhail says: “These results confirm the public’s irrational love affair with property. The range of countries in which people plan to buy property is surprising and indicate that people are not bothered by the risks involved.”
As we have all seen in the past few years, the number of multi-manager offerings available in the marketplace has grown rapidly.
Hemisphere Property Management
Hemisphere Property Fund
The Nottingham Friendly Society says parents of older children have been spurred into saving by the Governments publicity surrounding CTFs.Sales of the building societys second step tax exempts savings plan (TESP) doubled in the wake of government advertising for CTFs. Nottingam Friendly says parents of children too old to invest in CTFs are more likely […]
The Exchange has launched a private medical insurance comparative quotation service, including information from six providers.The six providers for the PMI service are Exeter Friendly Society, Health-on-Line, Norwich Union Healthcare, Prudential Health, Standard Life Healthcare and Freedom Healthnet. Five other providers are also in talks about future involvement.The service will be free to Exweb users […]
Written by Mike Riddell One of the current big debates in global financial markets is whether investors should believe ‘hard’ rather than ‘soft’ data, where the usually reliable business and consumer surveys have been suggesting strengthening in global growth momentum for some time now, while the economic data that feeds through into the Gross Domestic […]
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Two company directors have been disqualified for a combined 20 years after running a fine wine investment scam that lost investors nearly £1m. An Insolvency Service investigation found that Crimson Fine Wines cold-called customers and then did not purchase or allocate wines to those who had paid for their investments. The investment scheme offered investors […]
AJ Bell has won a case against a client who wanted his platform fees for the past 14 years reduced. A client, referred to as Mr N, complained to the Pensions Ombudsman that, because he did not have enough information about what fees would be payable, he sold a property holding in his Sipp far […]