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


Inward
investment
information
 


Licensee
Forum
 

Workforce development 

Transport
 

Business &
climate
change

Property &
Development sites

Business
Improvement
Districts

Housing
 

Strategy
 

Consultation opportunities
 

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

© 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:
Miscellaneous
National policy
Brighton & Hove Economic Partnership
Brown, Gordon
Whitehead, Christine


Browse our business Knowledgebase or search by keyword


Headlines

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 13 December 2017
Ethical Food StartUp Programme - Idea Generation Workshop 12 December 2017
Utilise Plus launch programme of energy efficiency grants and business support for SMEs 11 December 2017
City Centre Vacancy Rates Drop Slightly From Sept 5 December 2017
Innovate UK Announces Sector Competitions in Manufacturing and Infrastructure Systems 5 December 2017
GDPR, steps to early compliance 1 December 2017
The 29th Sussex Business Awards 2017 Winners Announced 1 December 2017
Old tech gear? Give IT a new lease of life 29 November 2017
Driving for Better Business Campaign launches 29 November 2017
ARKA Funerals sponsor Burning the Clocks 2017 with 'In Memory' lanterns 27 November 2017
Govia Thameslink launches third consultation phase on once-in-a-generation timetable restructure 23 November 2017
Coast to Capital Launches Brighton Mainline Alliance 22 November 2017
Calling all UK companies that have transport, parking and commuting issues to address 15 November 2017
Start-up Challenge Business Competition Offering £10,000 Investment to Young Entrepreneurs 15 November 2017
IUK Announces £10 Million Innovation Loans Infrastructure Systems Funding Competition for UK SMEs 15 November 2017
Sussex Food and Drink Grand Finalists Celebrate Success 10 November 2017
Meaning conference confirms speaker line-up: breeding a new army of business activists 10 November 2017
Positive body image documentary screening at Hove school 8 November 2017
Material Practices: Painting and Printmaking at the University of Brighton - Private View 8 November 2017
Economic Partnership kick starts city strategy consultation 8 November 2017
GTR respond to positive ASLEF referendum result 7 November 2017
350th employer signed up to the Brighton & Hove Campaign 7 November 2017
Rampion announces £4 million community fund 6 November 2017
The First Gamification Conference comes to Brighton 3 November 2017
Shoreham Port Welcomes New Commercial and Operations Director 2 November 2017
Burning the Clocks launches Crowdfunder for 2017 2 November 2017
The Gatwick Diamond Business Awards are now open for Entries 31 October 2017
Brighton Based Paxton Open New Centre for Technology & Innovation 27 October 2017
Adventures in risk taking for high growth businesses 27 October 2017
Can your business benefit from offering a 'world of work' experience? 27 October 2017
The Small Business Saturday Bus Tour launches across the UK for its fifth year 24 October 2017
Business Networking & Case Study Visit with the Sustainable Business Partnership 24 October 2017
Could you use an Energy Saving Workshop? 17 October 2017
Peter Blake raffle raises £2,290 for Middle Street School 17 October 2017
AMEX named major sponsor of city's bike share scheme 16 October 2017
Ropetackle Business Friends scheme 4 October 2017
VIRGIN STARTUP MEETUP 'HOW TO TELL (SELL) YOUR STORY' 3 October 2017
BTN BikeShare: a successful first month 3 October 2017
PLATF9RM open at Hove Town Hall