The US and UK economies are “teetering on the brink” leaving the UK property equities market facing a prolonged period of uncertainty, according to the head of REITA.
Patrick Sumner, also chief of property equities at Henderson Global Investors, told EGTV: “Unlike previous stock market worries this is not a situation that’s going to correct itself or move back up very quickly”
But Sumner said recent concerns over redemptions on UK property funds and the possible breaching of loan covenants were misplaced.
“I don’t think that, for the most part, the big investors, whether they are open-ended funds or the big property companies, are anywhere near breaching their covenants”
He said this week’s announcement by the government that buyers of UK REITs would not have to bear any inherent capital gains tax liabilities would make little difference to the UK REITs sector in the current conditions.
