Residential investments in a pension

Property Hawk has often suggested landlords should be able to hold residential investments in their pension. We think that it makes perfect sense to hold a stable asset class that produces a long term steady and rising income.

The Labour party in their fumbled rejig of the pension rules failed to 'grasp the nettle' when it came to the treatment of residential investments and pension. Under their A day pension reforms they failed to allow the holding of direct residential property in a pension; plumping instead for an indirect mechanism called Eputs ( Exempt Property Unit Trusts).

Eputs allow landlords to hold residential property in a SIPP through a collective arrangement. To find out more about how Eputs work and some current schemes have a look at this recent FT article.

Remember, make sure you understand and trust the companies you are investing in and watch out for excessive management charges.

Expert tax advice