Property Sipp U-Turn not affecting Buy-to-Let

Chancellor Gordon Brown’s controversial decision to prevent residential property being used as an investment plan for pensions is reported to have had no “discernable impact” on the buy-to-let property investment market.

Last December, Mr Brown announced a U-turn plan to prevent residential property being used as part of a Self Invested Personal Pension (SIPP)

Many feared the Chancellor’s new plan on the Sipps market would have a knock-on affect on the buy-to-let market, although the most recent quarterly review by the ARLA (Association of Residential Letting Agents) has dispelled this concern.

Conducted in February, the review revealed that many present buy-to-let landlords expect to purchase additional investment properties in the next twelve months and expect to own their investment property for the long term future.

However, short term investment in rental property has been show as close to non-existent, with only 1.1% of British landlords expecting to hold property for under two years.

Date: 30.03.06