Budget Analysis 2004
New Property Funds Offer Tax Breaks The Chancellor re-confirmed his commitment to release publicly owned land (who gave him permission to do that then - no one in this office did!) to allow property investors to be involved in developing land for low cost home building schemes.
In addition , the Property Investment Trusts will be launched next year and allow both ISA investors and even pension funds the opportunity to invest (currently pension funds cannot invest in residential property).
Our view
We would like to see the small print after the consultation period finishes. No doubt there will be some twists and restrictions although I am sure this will be a welcome move for all.
The Government anticipates that £1m new homes will be built over the next ten years and will hopefully slow down the spiral of house prices increases. Be careful - we believe this may cause a property slump and crash if it is not checked by other developments, particularly on the pension fund and property purchase front.