If the economic crash of 2008 did not cause problems for those who’d borrowed under the old limits, should we consider reverting to them?
Finally, while the impact of Brexit on the commercial property market is a matter of debate, with words like ‘soft landing’ being bandied about and an expectation that investment from overseas will continue to keep the market relatively buoyant, it strikes me that relaxing the borrowing limits might allow a greater number of Sipp investors to enter the market at a time when prices could be attractive.
Also, with Sipps often used to purchase the business premises of the Sipp member themselves as an efficient means of business funding, more relaxed borrowing limits may help there.
Had it not been for the explosion in numbers of online Sipps I suspect calls for a relaxation in borrowing limits would have been louder.
Now, with the difficulties faced by bespoke providers evidenced by consolidation in the Sipp market, perhaps now is the time to re-consider those limits.
Gareth James is head of technical at AJ Bell
