A Sipp and SSAS provider has reported it had a 25% increase in commercial property investment in 2015.

Xafinity stated that 140 commercial property and land purchases were completed in 2015 and the total value of these properties was £40m, an increase from £30m in 2014.

These comprised many different property types from retail shops costing £50,000 to much larger properties costing over £1m, with an average property value of £250,000 in Sipps and £340,000 for SSAS.

Jeff Steedman, head of business development for Sipp/SSAS at Xafinity, said: “We continue to see more and more of the great British public investing in commercial property up and down the country.

“Putting property into a pension is an excellent tax efficient way for SMEs to grow their pension funds for retirement.

“With stockmarkets once again in turmoil, most business owners and the self employed see bricks and mortar as a long term solid core investment for their pensions.

“And more than 70% of our clients are owner-occupiers, so their businesses are the tenants giving them great long-term security. The rental income alone can provide excellent growth for the pension.”

Mr Steedman said: “We are also seeing an increasing number of “second hand Sipps” as financial advisers and their clients see fit to move their pension’s provider in light of increased fees and poor service.

“In fact we have designed and launched our property special offer to subsidise the costs of moving provider and help these people make a fresh start.”