The Stirling-based firm said 178 commercial property or land purchases/transfers were completed in 2017, with a total value of £62.3m - a 38% increase on the £45m worth of properties bought by clients in 2016.

Prices ranged from £35,000 for small office properties to several valued at more than £1.5m.

Xafinity also sold 62 properties on behalf of clients during 2017.

The total number of properties now under administration with Xafinity has increased to 1,831.

Jeff Steedman, head of business development for SIPP and SSAS at Xafinity, said: “Directors of SME companies are continuing to use their existing pension plans to self invest into their business. 

“Putting property into pensions remains an excellent, tax efficient, way for SMEs to grow their pension funds for retirement, as the rental income alone can provide excellent growth.”

“A recent article suggested less than 3% of commercial property purchases are carried out using pension fund money.  

“There is clearly a huge opportunity for further growth in this sector as the tax benefits within pensions are so compelling.

Andy Bowsher, director of self invested pensions at Xafinity said: “I believe Xafinity is increasingly a stand-out proposition for SIPP and SSAS given our product breadth, unique and keen pricing, personal service, and absolute focus on supporting advisers.

“We were absolutely delighted to welcome over 100 new IFA firms to Xafinity in 2017. 

He added: “We are just beginning to see the tip of the iceberg on toxic assets emerging for SIPP providers. 

“Strong governance since our SIPP launch over 10 years ago means we shunned the numerous invitations to sell volumes of SIPPs incorporating many ‘interesting’ investments.

“This is what advisers should be looking at more closely in 2018.”