Seems residential properties are to be excluded from SIPPS....
"5.63 ... from 6 April 2006 SIPPs and all
other forms of self-directed pensions will be prohibited from obtaining tax advantages
when investing in residential property, and certain other assets such as fine wines.
This action will ensure that tax relief is only given to those whose purpose in making the
contribution is to provide themselves with a secure retirement income. However, the
Government remains committed to encouraging investment in a range of assets as part of
pensions saving and is therefore minded to allow SIPPs to invest in genuinely diverse
commercial vehicles that hold residential property, such as the proposed Real Estate
Investment Trust model (detailed further in Chapter 3). The Government will not hesitate to
take action if it becomes clear that people are trying to use collective vehicles to get around
the rules for prohibited assets."