Brits opt for property pensions

Posted: 30 Nov 2007 10:59:25 GMT

It is becoming increasingly common for Britons to buy a property with a view to it serving as a pension.

It is becoming increasingly common for Britons to buy a property with a view to it serving as a pension.

According to Scottish Widows, a growing number of people are shunning traditional pension funds in favour of investing their money in property.

The firm says that rising house prices in the last few years are at least partly behind the trend.

"A lot of people are looking at property as being an alternative to pensions these days, mainly because property prices have done so well over these last few years," said Scottish Widow's Ian Naismith.

"Some people may be thinking, 'I may get more from property over the long term'.

"Another factor is that people may not like their money to be tied up these days. In a pension scheme you cannot get at it and some people may like to know that the money is there if they need it," he continued.

The latest Land Registry figures show that house prices increased by 0.1 per cent between September and October.

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