Reits rules 'should be liberalised'

Regulations that govern UK real estate investment trusts (Reits) should be amended, according to the British Property Federation (BPF).

In its submission to the government before the Budget, the organisation has claimed that the current system is "hindering growth" and the liberalisation of rules would encourage new people to enter the market.

The body, which represents a range of firms including those involved in commercial property management, has also called on an increase in awareness of residential Reits.

Peter Cosmetatos, director of finance for BPF, said evidence from countries including the US has shown that the trusts "can play an important role for facilitating the recapitalisation of the property sector after a crash".

He added: "We intend to carry out further work in this area more broadly within the property industry and in collaboration with colleagues in the banking sector and capital markets with a view to putting specific proposals to government in due course."