The DTLR and the Treasury are planning to set up tax transparent vehicles (TTV) for residential investment. The move follows comments made in Stephen Byers’ housing speech last week.
The Secretary of State for the DTLR said last week that he wants to see institutional investment in new residential developments “on a large scale”. He would like them to become as important as those in the US and the Netherlands, where institutional investors account for over half the market.
The government has now admitted that it is considering the possibility of a TTV for residential investment. A source within DTLR said: “The call for institutional investment in housing was mentioned in the speech for a reason. We are talking about some form of tax transparent vehicle with the Treasury.”
However the DTLR would not comment on what shape the vehicle would take, whether it would be a resurrection of the failed Housing Investment Trusts (HITs) or a US-style Real Estate Investment Trusts (REIT), as called for by the industry.
EGi News 09/08/01
