House Crowd Backs BTL Pension Call

The House Crowd is backing the call for the government to allow savers to held residential properties in their personal pensions.

The 2014 budget has been billed as budget for savers, providing enhanced flexibility over use of pension pots, with obligated annuities scrapped.

But one company, buy-to-let lender- Paragon Mortgages, has called on the government to go even further and let savers include BTLs in their SIPPs – self-invested personal pensions.

There is clearly a strong logic for this, as many people invest in properties as their sole or additional security for their retirement.

Paragon’s managing director, John Heron, said: ‘‘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… but buy-to-let property is unusual in that investors cannot currently hold it in their pension.’’

Research conducted by Paragon supports their claims that many property investors see their BTL investments as a key part of their retirement and pension planning.

75% of landlords they surveyed said their properties were their pensions.