NABARRO Nathanson is lobbying the Government to change the law to boost investment in the ailing residential property market.
Nabarros is due to meet with Treasury and Inland Revenue officials on Wednesday (16 June), to discuss its proposals, based on booming US real estate models.
Nigel Heilpern, Nabarros property finance partner, told its annual property finance conference last week he is cautiously optimistic the proposals will get the green light.
Nabarros wants a residential property investment structure similar to that of the US-based Real Estate Investment Trust (REIT) model. Heilpern says it is the best way of injecting cash into the residential property market.
The REIT model unleashes untapped potential investment from small-time as well as institutional investors, says Heilpern.
He claims there is currently an investment vacuum because investors are not being rewarded with suitable tax breaks.
Heilpern told the conference: “The Government has made much play of its commitment to improving the social and urban fabric of the nation's housing stock but still has no structure to bring in the large-scale institutional capital investment needed to transform the residential sector.
“The abolition of advanced corporation tax credits killed off Housing Investment Trusts, leaving investors without a realistic and tax effective way of putting money into this part of the economy.”
The Royal Institute of Chartered Surveyors, PricewaterhouseCoopers, Bromford and FPD Savills will also be present at next Wed nesday's meeting with the Government.