The REIT stuff

UK REAL ESTATE investment trusts were the subject of the 14th and 15th sittings of the Finance Bill debates. Much of the initial debate turned on the fact that UK REITS were geared very much to commercial rather than residential property. According to Sir George Young 'the original concept of a REIT ... was to promote investment in residential property' and he thought that in the Budget the Chancellor affirmed this when he talked about attracting 'more capital into house building'. However it later became clear that the 'initial impact' of the scheme would be on commercial property and that the scheme had become broader as the Treasury realised that it was going to be difficult to get institutional investment in the residential market. Sir George hoped that the Economic Secretary would give 'some hope' that residential investment would be a 'top priority'.

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