the Business Forum and
the Economic Partnership
in Brighton & Hove
Homepage    BCRP Intranet    Funding    Events    Knowledgebase    Links    About us     Contact us
Key projects



Workforce development 


Business &

Property &
Development sites




Consultation opportunities

Brighton & Hove Business Forum
8-11 Pavilion Buildings, Brighton, BN1 1EE
Tel: 01273 735442
Email: info@brighton

© Brighton & Hove
Business Forum

News - 29 February 2004
Will he be REIT on March 17th?

Do REITs Herald a New Age for Property?

On March 17th the Chancellor Gordon Brown is likely to issue a consultation paper that many believe will transform the UK property market including residential property and affordable housing.

REITs (Real Estate Investment Trusts) are tax efficient property schemes that have already transformed the property sectors in countries like Belgium, Australia, France and Japan.

They apply to quoted property companies which can transform into a REIT for a one off payment of half of a groups capital gains tax. This will allow them to be exempt from paying corporation tax and any future capital gains tax. A REIT must then transfer a minimum of 75% of its income to investors. This will make them attractive to pension fund investors but it will also allow private investors to effectively take a stake in the property sector without actually buying property themselves e.g. in a buy-to-let project.

The real advantage for the sector however is the influx of funds that will allow them to expand and build more. In the last fifteen years for instance the value of the North American property market has increased from $10bn to $200bn. Australia has seen the sector increase from $5bn to $50bn and Japan has gone from zero to $10bn in the last ten years.

Some analysts predict that REITs will facilitate the regeneration of the affordable housing-to-rent sector and, given the shortage of housing in the U.K., the government may well start with a REIT that is focussed entirely on that sector which will disappoint many commercial operators.

Far from listing on the stock market, over the last few decades in the U.K. many property companies have gone private and as a result billions of pounds of assets are locked in offshore accounts. The removal of tax disincentives could reverse this trend and see the money move back into the U.K.

The Brighton & Hove Economic Partnership has commissioned research by professor Christine Whitehead of the LSE into the affordable housing problem in the city and the results will be presented at a high level Think Tank at the Hotel Seattle on 1st March. Professor Whitehead’s paper will be published on this site.

Read related items on:
National policy
Brighton & Hove Economic Partnership
Brown, Gordon
Whitehead, Christine

Browse our business Knowledgebase or search by keyword


20 March 2018
Brighton named most entrepreneurial city AND second best for student happiness according to Fresh Student Living
19 March 2018
A Meeting with Chris Fox, Lib Dem Peer - Why Business Matters 14 March 2018
Better Business for All Event with BEIS 7 March 2018
Brighton celebrates women in tech as Spring Forward festival returns for a fourth year 6 March 2018
Six months of success for BTN BikeShare 2 March 2018
Sustainability in Action masterclasses for Sussex businesses 2 March 2018
Doing Business in China comes to Brighton 1 March 2018
Brighton & Hove Chamber of Commerce presents: Protecting your brand- a guide for fast growth businesses 1 March 2018
Long haul passengers boost local economy and jobs, according to new Gatwick report on the 'Visitor Economy' 28 February 2018
Save time reporting crime 27 February 2018
Warren Morgan Resigns from Brighton & Hove City Council 23 February 2018
Brighton Technology Company, Paxton Ranks in Sunday Times 100 Best Companies to Work For 23 February 2018
Greater Brighton's Commercial Property Database 22 February 2018
SE-ASSIST - Launch of Loan Capital in Greater Brighton 19 February 2018
House Price update Q4 2017 19 February 2018
What would you do in a crisis? 19 February 2018
The investment journey for high growth entrepreneurs 9 February 2018
Make Change Count 2018 - helping rough sleepers in Brighton & Hove 8 February 2018
Brighton Technology Company Paxton Announces Recipients of New Scholarship Programmein Association with the University of Brighton 8 February 2018
Cyber London Accelerator Invites Summer 2018 Entries 8 February 2018
Innovate UK Launches Strand 2 Emerging and Enabling Technologies Sector Competition 8 February 2018
Success In Sussex As Food And Drink Heroes Crowned Winners 8 February 2018
UK Games Fund - Fourth Round Open to Applications 8 February 2018
Innovate UK & Prince's Trust Launch Young Innovators' Programme 6 February 2018
Brighton & Hove Food Partnership launches 'Kit Out The Kitchen' crowdfunding campaign 2 February 2018
Brighton & Hove Council and Crest Nicholson win £15m government funding to kickstart King Alfred project 1 February 2018
Could a Utilise Plus Programme grant help you? 1 February 2018
Shoreham Port Facilitates Huge Operation 18 January 2018
IUK Announces Collaborative R&D Funding for Connected and Autonomous Vehicles Simulation 18 January 2018
Renault-Nissan-Mitsubishi Launches $1 Billion Corporate Venture Capital Fund for Next Generation Mobility 17 January 2018
PORTlife #17 Newsletter Out Now 17 January 2018
Over £19,000 raised for Burning the Clocks 2017 11 January 2018
Brighton Main Line Improvement Project: Planned closures in October 2018 and February 2019 11 January 2018
Come on in! Fairtrade Fortnight 2018 8 January 2018
Sussex Business SkillSnap targets hospitality industry skill shortage 3 January 2018
House Price update 2017 Q3 20 December 2017
£14.35 Million European Regional Development Fund Launched 19 December 2017
Leading the way - Sustainability in Action masterclass 15 December 2017
Brighton is among the best places to start a business due to their strong growth factors 15 December 2017
GTR consultation ends 20th Dec 2017