The conclusion to start Real Estate Investment Trusts (REITs) has the capacity to transform the property market of Britain. In the pre-Budget speech, the policy was proposed in order to attract more investment into property companies and to enhance the home building industry. Laws will be printed and drafted before the completion of the year detailing the particulars of the legislation. 

REITs charge smaller levels of tax and need the companies to circulate at least 95 per cent of their lucre in dividends to investors. They’re very popular in Australia, France and the United States. Due to their success, many have began to speculate that Britain might see a rise in new property investment.  As per the Australian Financial Review, the spokeswoman for the London Stock Exchange believes that the introduction of REITs would have a great effect in Britain and also throughout Europe.

Ms Mattison, the spokeswoman for the London Stock Exchange said that the announcement by the government on REITs is an essential milestone for both the investors and the property industry. She added that they would be working with the market in some time with the aim of attaining London as the centre for the listing of REITs all over the EU. 

As per Reuters, Gareth Lewis is concerned that the attempt of the government to compensate for revenue lost due to avoidance of the corporation tax would push up the conversion costs that might stop some companies from taking advantage of the opportunity. He cautioned that the charge would be vital to determine whether the industry takes REITs up or not. Meanwhile, it has been suggested by Legal Week that the real estate lawyers are preparing for an increase in business related to the different aspects of establishing REITs.

David Lane, a real estate partner ar Lovells said that REITs might have a big impact on the property sector. He further said that it would work for law firms by listing companies preparing to convert into REITs and setting up new REITs.