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The Actuary The magazine of the Institute & Faculty of Actuaries

Second homes

I enjoyed reading Peter Tompkins’s editorial in the November issue.

Peter acclaims the right of people to use their personal pension contributions to invest in residential property ‘occupied by younger people not yet able to put down roots of their own’. This right extends to second homes. People may wish to invest in property without necessarily letting it. Tax relief on personal pension contributions will stimulate a rather sluggish property market.

As Peter points out, we understand residential property ‘far better than we know the FTSE companies our with-profits or managed funds invest in’. With a house, at the end of the day we have still got the bricks and mortar. With our currently overpriced shares, we may only have some pieces of paper of little value.