Government pensions tsar Lord Adair Turner today held out the prospect of commercial property being included in a new state-run pension scheme
The Savings Scheme is the Government’s answer to Britain’s anticipated £57bn savings gap, and aims to Channel money from employees and firms to a large selection of bonds, equities, cash and other assets.
Turner said: `Residential property may not be suitable for the scheme, due to the high levels of ownership in Britain, but commercial property represents a good diversifier in a defined pension scheme.
`It’s returns have proven better than bonds, and less volatile than equities.’
BPF President Nick Ritblat said the last 12 months, with strong growth in values, the final go-ahead for REITs and escalation in use of derivatives could represent `the best ever year for UK property.’
However, he said that the industry needs to continue to attempt to modify REITs, saying unlisted and AIM-listed REITs and better vehicles for owner-occupiers are needed.
He also said he is `very disappointed’ that residential REITs are `a slow starter at best’, but that the commercial property world as a whole should start to play a bigger role in satisfying housing shortages.
He also repeated BPF attacks on the Government’s proposed planning gain supplement, saying it will not deliver regeneration.