Calls for property pension

It's something that here at Property Hawk we have been calling for years.  The right to buy residential property and hold it in your personal pension.

There were no changes announced in the Budget directly relating to property pensions although there is a huge relaxation in the need for people to buy an annuity.

Paragon Mortgages has been backing changes to go one step further and allow people to hold residential property in their SIPPs.  John Heron Managing Director of Paragon has called on the Government to make the changes:

“It is clear from independent research that landlords favour an investment in residential property because it is a physical asset, has a strong performance record through the cycle and acts as a hedge against inflation.

“It is also clear from research that landlords regard their investment in property as part of their wider planning for their financial security in later life.

Over half landlords invest in their pension
Research carried on by Paragon Mortgages last year indicated that 75% of landlords say that their properties are their pension.  65% plan to live off their rental income when they retire.  A property pension with it's strong revenue generation is ideal to provide a constant and increasing retirement income as well as future potential capital gains.

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