Chancellor Gordon Brown believes real estate investment trusts could be the answer to Britain's weak private rental sector.
The Barker review into housing supply, published in interim this week, highlights the UK's weak private rented sector and recommends a model based on US real estate investment trusts to encourage investment.
Brown says he will consult on a new incentive to encourage the creation of these trusts which the pre-Budget report says would expand the private rented sector and improve liquidity, transparency and scrtiny and provide access to property for long-term savings.
Iimia head of investment trusts Nick Greenwood says: “It will bring the UK in line with the rest of the world. Another plus is that the yield generated by Reits is much higher.”