ISA commercial property investment to reach £12bn, say analysts

A massive £12 billion in commercial property investment is due to be made through ISAs, analysts are predicting.

The sudden injection of cash into property investment is expected due to changes that allow direct investments into commercial property, such as office blocks and retail space, to be made through tax-free savings funds such as ISAs.

UK savers can put up to £7,000 of their savings into ISAs every year tax free, and with the 2005/06 deadline approaching on April fifth, time is running out.

Once savers have filled their cash ISA allowance for the year they can also invest £4,000 into a mini investment ISA.

Norwich Union and Legal and General are among the big providers of ISAs who have already made their funds eligible for commercial property investment.

Commercial property investment has garnered headlines recently due to the relatively strong performance over 2005.

While the growth figures of the past few years may be misleading, it remains a strong and steady investment, said Darius McDermott of Chelsea Financial Services.

"You are probably too late if you want to get some of the great returns of the past few years of commercial property," he told This is Money.

"However, as an asset it is not linked to shares or to bonds and can give very steady returns. It is excellent if you need some balance in your portfolio.

Related Articles:
Half of Britons 'have never taken financial advice'
Britons 'would pay more for environmentally-friendly goods'
Consumers urged to consider Fairtrade options
'Number of advantages available' in offshore investment
50% parents not paying pocket money