Friday, May 01, 2009
FT covers latest proposal to help prop up the residential housing market
FT: Tax cut needed to prompt pension funds to invest in housing
Plans to encourage pension funds to invest in private rented housing have been widely welcomed. However, the British Property Federation (BPF) has warned that the initiative, which is due to be formally announced later today (1 May), may not be enough without changes to stamp duty charges for large scale investors. The Homes and Communities Agency (HCA) is due to announce later today (1 May) that is it in discussions with private investors, including pension funds, to help build new rental properties. Around eight organisations, thought to include two institutions, two housing associations and one or two big name pension funds, have reportedly been in talks with the HCA over building the new properties.
Posted by jack c @ 10:20 AM (374 views) Add Comment
4 Comments
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1. lenny said...
Glad I am drawing my pension early, I wouldn't want my contributions invested in rental properties right now!
2. drewster said...
I'm generally in favour of having large companies running rental operations, instead of the present system of amateur landlords. When a big company screws up, the media reports the story; but when a thousand individual amateur landlords shaft their tenants, the media keeps quiet.
3. lenny said...
I was really referring to the suitability of pension funds investing into rental properties. I could not invest into a scheme/fund where illiquidity could be a problem and I certainly would not invest in a declining market unless I was shorting the shares.
I know a couple of investors in Residential & Commercial Property Funds who have lost over 40% of their portfolio value and the commercial fund is not allowing withdrawals from the fund.
4. mark wadsworth said...
What Drewster says, but the article itself is mentally ill.
What bl00dy 'housing crisis'? Who in their right minds wants to start building now, shouldn't we use the houses we've got first (agreed in places like South West they could do with building more homes, but not necessarily elsewhere). Remember that tax breaks for pension funds mean higher taxes on everybody else.