Sipps U-turn good news for first time buyers

16-Dec-2005

Aspiring homeowners will have a greater choice of affordable properties as the government changes its mind over self-invested personal pensions (Sipps).

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Gordon Brown's decision to prevent residential property from being included in Sipps is good news for first time buyers, says the National Association of Estate agents (NAEA).

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The NAEA believes that it will ease previous concerns over the availability of first time buyer properties, as there will no longer be the expected surge in buy to let investors.

"Although the government's turnaround on Sipps was a massive disappointment, it does mean that less people will be investing in typical first time buyer accommodation for buy to let purposes," explained Peter Bolton King, chief executive of the NAEA.

"While the U-turn will not affect the continuing problem of affordability for first timers, it does mean that some of the pressure to compete for suitable homes has been removed."

Mr Bolton King described the move as a "positive breather" for those looking to get on the first rung of the property ladder and said that it would be especially helpful in regions such as the West Country, where demand for second homes is increasing.

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