Housing associations and charities will meet the Treasury next Wednesday to discuss their role in a new form of investment that could bring millions of pounds into private rented housing.
The meeting, organised by homelessness charity Shelter, will investigate real estate investment trusts. REITs, the first recommendation made by the Barker review (HT 12 December 2003, page 8), are designed to make property schemes more attractive to investment institutions by giving tax breaks to the trusts, thus boosting returns for investors.

Associations, particularly those with market renting arms, could build, buy or manage property for the trusts.

Paramount, the market renting arm of Home Group, Lord Best, chief executive of the Joseph Rowntree Foundation, and the British Property Federation have been invited to the meeting, along with academics, tenants' representatives and investors. Ed Balls, the Treasury's chief economic adviser, is also expected to attend.

Ian Fletcher, the BPF's director of residential property said: "One issue we will explore will be the interaction between REITs and associations.

"We will look at how to encourage REITs to invest in key-worker housing and some tax and planning issues that need to be addressed on that score."

A spokesman for Shelter said it would also raise the need for tenancy deposits, better standards in the private rented sector, and how REITS might work with regulation and standards.

The Treasury is due to issue a consultation on setting up the trusts in time for the Budget in April.

Source

Housing Today