Chancellor offers Sipps lifeline
Posted: 31 Mar 2006 15:00:46 GMT
Sipp holders have been given a boost by Gordon Brown, according to Assetz.
The chancellor is set to allow Sipp holders to invest directly in student halls of residence as well as indirectly in other residential properties.
In an apparent change of policy from a pre-Christmas report that seemed to spell the end for the scheme, Sipp holders could yet be proved astute investors.
Although Sipp holders will not be able to invest in flats that belong to students they will be able to buy a stake in halls, which with increasing numbers of people going to university, could prove to be a lucrative investment.
The government hopes to eventually see half of all school leavers enter higher education; meaning buildings to house the avid learners will be a necessity.
Although the chancellor has not fulfilled predictions that he would permit direct investment in residential property, his report did outline that Sipp holders would be able to invest indirectly through a "genuinely diverse commercial vehicle" such as a REIT.