This year seems likely to be the year of the real estate fund. As the commercial property boom continues, the latest advertising campaign to hit the billboards is Legal & General Investment’s invitation for individuals to invest in their real estate ISA. Above a brightly coloured cityscape of legoland skyscrapers flies the strapline: “We make it easy to invest in a UK property ISA.” From just £50 a month or a £500 lump sum, you too can secure your future in real estate.
The Government is also keen to promote investment in real estate. Gordon Brown’s Budget last month was accompanied by the Treasury department’s paper on real estate investment trusts (REITs). The REIT promises to allow the UK public to invest their savings in managed property funds. Their investment will be poured into a pot of cash which will flow between properties traded within the portfolio without incurring corporation tax – and all from a listed company.
