News

Pensions Savers to Pour £10bn into House Markets - The Times 2005

Savers will pour £8.5 billion into Britain's housing market from next April, when new rules that allow people to spend their pensions on homes are introduced.

A new study predicted a rush to take advantage of tax breaks which means that investors could put as little as £120,000 towards a £200,000 house and have the Government pay the rest of the purchase price.

Under rules that come into effect on 6th April next year, investors will be able to buy residential properties using funds in their self-invested personal pension(S.I.P.P).

They will be able to put up to £215,000 a year into the Sipp to facilitate the purchases, which will receive tax breaks afforded to other pension savings.

According to a recent survey almost 80 per cent of investors plan to buy a buy-to-let property into their Sipp.