Winterthur Life has discovered that up to a quarter of its clients would tend to include residential property in a self-invested pension plan.
Winterthur attributes this appetite for property as a means of investment to current low interest rates, low unemployment and a demand for housing.
It also pointed out that this rush for property will continue in the run-up to April 6th next year, when the new pensions rules take effect, as well as beyond that date.
However, the pensions company also stresses that attractive as this market may be, not everyone will be able to fully utilise it.
Constraints such as average pension fund size and the new borrowing rules may restrict potential investors.
There are also many costs involved in such a venture, as house prices combined with property agent prices can also increase expenditure.
Mike Morrison, pensions strategy manager at Winterthur Life, commented: "The inclusion of residential property within a self-invested pension plan is proving popular with many of Winterthur's clients.
"These are typically high net worth individuals and are positioned well to take advantage of new A-day rules."
In response to this demand, Winterthur Life launched a new flexible self-invested pension plan in May, which offers a range of flexible investment options to independent financial advisers.
New pensions rules could cause property thirst
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New pensions rules could cause property thirst
Thu, 22 Sep 2005
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