Something I occasionally get asked is whether or not a person can use their pension fund to purchase a property. The short answer to this question is yes, they can. However there a number of regulations around this meaning it’s not suitable to everyone. I will now give a brief summary as to why this may or may not suit you as a pension investor.

This is not something for someone who is just beginning to contribute to a pension as there will need to be an accumulated fund in place within the pension in order to purchase the property in the first place. Any upgrades to the property will need to be paid for out of the pension fund and private funds may not be used. Borrowing may be possible but is not guaranteed.


The main advantages to purchasing a property through a pension are as follows:

  • A good property may see a large increase in value over time and therefore an increase in the value of your pension.
  • Any increase in property value is exempt from Capital Gains Tax.
  • Rental income is rolled up within the pension fund and therefore exempt from income tax.


However, there are also some potential downsides to this:

  • The property may depreciate in value, thus reducing the value of your pension.
  • You may have difficulty selling the property when required, for example, at the point of retirement.
  • Rental income may not be as steady or as considerable as anticipated.
  • You may not use the property for personal reasons or rent or sell it to relatives and other connected parties.

If you would like more information or wish to discuss purchasing a property through your pension, please give me a call on 068 31777 or 087 9308181. Alternatively, you can email me at

Gerard Ward

16th July 2019