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Treasury rejects Reit regime changes
by Michelle Abrego on Dec 12, 2012 at 10:59
The Treasury has decided not to alter the real estate investment trust (Reits) regime arguing proposals aimed at boosting investment in social housing were unnecessary.
In April the Treasury launched a consultation to see if any changes to the Reits regime would help meet wider government objectives to increase affordable housing.
The Treasury concluded that changes to the Reits to support social housing were ‘less pressing’ as the relaxed barriers of entry to investing in Reits put into effect through the Finance Act 2012 were sufficient.
In its response to the consultation the Treasury said: ‘The overall message was therefore that for some stakeholders the changes to the Reits regime in the Finance Act 2012 were sufficient to enable them to set up a social housing Reits.
‘However for those who did not feel social housing Reits were a viable option, further additional changes to the Reits regime would be unlikely to make difference to their thinking.’
‘After considering all the responses received, the government has therefore concluded that it does not intend to amend the regime at this stage.’
It added that as many suggestions were made through the consultation, the Homes and Communities Agency will be consulting on regulating for-profit providers, which will establish integration between the regulator and potential Reits.
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