The residential property market urgently needs a tax-efficient vehicle to boost the private-rented sector.
In a research paper published this week, PricewaterhouseCoopers (PwC) claims that unless more money is invested in residential property, the market will not be able to cope with the projected demand for new privately-rented flats and houses.
PwC added that, as well as being necessary to bolster supply, residential property is an ideal investment for members of the public because it “closely mirrors” earnings and tends to “outperform the commercial property sector”.
The research follows a call made by DTLR secretary Stephen Byers for more institutional investment in residential to boost the private-rented sector, which accounts for 12% of UK housing.
PwC says there is no procedure in place to channel large amounts of private money into the sector, adding that “what is required is a tax-transparent vehicle that will not pay tax on its income or its gains”.
EGi News 14/12/01
