Digital property investment platform Bricklane.com is to launch a SIPP which it says will give investors exposure to the UK residential property market at zero cost if they invest over £25,000.
 
The move means Bricklane.com’s Regional Capitals fund, a REIT, can now be included in Hartley Pensions’ SIPP products. Bricklane says this allows investors and advisers to benefit from residential property market returns without taking capital out of their pensions and without the growing challenges now associated with buy-to-let investment.
 
New Prudential Regulation Authority underwriting rules, in addition to the recent stamp duty increases and mortgage tax relief changes, have made the buy-to-let market more complex for investors, says the firm.

Investors choosing instead to build property market exposure via the Bricklane.com platform would benefit from the tax advantages conferred by both REIT status and pension wrappers, it claims.
 
The new free offering from Bricklane.com is claimed to be an industry first and comes a year after the launch of its online platform, ISA wrapper, and Regional Capitals fund, which owns properties in Leeds, Manchester and Birmingham. The firm says the fund returned 8.72% to investors in its first year through a combination of rental income and capital growth. The fund invests in professionally managed properties.

Simon Heawood, chief executive of Bricklane.com, said: “Many still consider residential property to be an attractive investment option for retirement planning and there have been long-standing demands from investors and advisers alike for its inclusion in tax-efficient pension wrappers. But, to date, investors have had to make the trade-off between investing in property and the benefits keeping money within their pension.
 
“Our partnership with Hartley Pensions allows us to offer the UK’s first residential property fund in a SIPP with no third-party charges, meaning customers can open a new SIPP at no additional cost or transfer from an existing provider and make instant savings.
 
Denis McHugh, CEO of Hartley Pensions, said: “The partnership will mean savers no longer need to withdraw money from their SIPPs just to get access to bricks-and-mortar returns as they can now take advantage of this diversified and tax efficient investment product within their pension.”

Bricklane.com’s partnership with Hartley Pensions, part of the Wilton Group, is designed to simplify the investment process for new customer to its funds. Investors allocating over £25,000 to the product will pay no fees for setup or ongoing maintenance of a new Hartley Pensions Abacus SIPP.