Disappointing numbers taking up Reits

Investment in Real Estate Investment Trusts (Reits) has been disappointingly slow since their introduction in January, according to experts.

Reita, which promotes awareness of Reits, has found that many investors would rather reap quick profits from "interesting areas" so, in fact, the UK property market was more active and dynamic before Reits came into being.

Patrick Sumner, the chairman of Reita, says that many investors believe that the property market has already peaked, so they are reluctant to invest in it but he disagrees, arguing that this is an "imperfect understanding of the property market".

Mr Sumner said: "Stock markets are a bit impatient they obviously want to buy and make a profit when they sell and because mostly investors in this sector are general investors and aren't sticky they have moved on to 'the next girl'.

"While we are expecting pretty average performance from UK property as a whole this year and we are around six to seven per cent total return on offices we expect to see 20 per cent," he added.


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