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Half of advisers lack knowledge on property investment, says Reita

Reita, the industry body for real estate investment trusts, says 47 per cent of IFAs believe they do not have enough knowledge to provide advice on property investment under the RDR.

A survey of 253 advisers shows that almost half think they do not have broad enough property investment knowledge under the RDR’s guidelines for “whole of market” independent advice.

Eighteen per cent say they are already well-equipped to give independent property investment advice, 16 per cent are not sure and the remaining 19 per cent say they do not give any clients advice in this area.

Reita programme director Philip Fry says: “It is a little concerning that almost half of all IFAs just don’t feel they have all the education and training needed to be confident about giving clients advice on the property investment market, particularly when it is such an important sector and can be a vital component of a balanced portfolio.

“Clearly, as an industry, we all have to work hard to ensure that more is done to help these advisers and lay out a clear route of specialist training and exams for them to ensure they are well equipped with all the facts they need to give clients best advice in the run up to the new RDR legislation in 2012.”

Half of IFAs surveyed say that given declining house prices and increasing residential yields, their clients should be interested in buy to let, with 7 per cent saying they should be very interested.

This represents a slight increase on the April research results with the comparative results being 46 per cent and 5 per cent.

Fry says: “Whilst there still remains a divided response from advisers on the topic of buy to let and residential property investment, the slightly more optimistic results from this research do support the more bullish property price expectations now being supported by many industry experts.”

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