Positive developments for UK property companies

taxation

Property shares are trading at a 15% discount to net asset value because investors suffer double taxation, but if these companies converted to property investment (Pif) trust status that gap could narrow significantly

The shares of UK property firms have performed well in recent years and could be about to get another fillip. Last year was the fourth in succession that the quoted property sector outperformed the FTSE All-Share. Over the previous three years, this outperformance was largely driven by the relatively defensive nature of the property asset class. However, the sector's strong showing in 2003 was on the back of further consolidation in quoted property stocks, an improvement in the UK economic outlook and pre-Budget statement highlighting the possible introduction of real estate investment tr...