Changes to the rules regarding Self-Invested Personal Pensions (SIPPs) will occur next year (A-Day on 6 April 2006) and this could cause UK property prices to rocket by as much as 15%, according to organisers of the Homebuyer Show (25 - 27 February 2005, ExCeL, London).
At the moment SIPPs can contain a range of investments, including commercial property. However after A-Day, it will also be possible to invest pension funds in residential and non-commercial property overseas and receive certain tax reliefs.
Nick Clark, Managing Director of the Homebuyer Show commented: "The high number of buyers coming to the market in the form of pension funds could boost house prices by up to 15% through increased competition for properties.
"This will benefit existing homeowners and property investors who could see their buy-to-let returns substantially increase as the market booms."