Almost half of advisers to incorporate REITs into portfolios

44% of financial advisers plan to incorporate UK REITs into their investment clients portfolios when they launch in January 2007.

This is an increase of 10% in the past six months, reflecting a growing understanding and appetite for REITs.

The results are part of a larger independent research project commissioned by and carried out by consultants, NMG Research. Over 200 financial advisers took part in the survey.

The survey also revealed that only 8% of advisers claimed to be not at all informed about REITs, and despite the lack of awareness amongst pensions advisers, of those advisers recommending clients invested in collective property schemes, 72% thought pension funds were the best vehicle for this.
36% of advisers expect there to be a desire for residential UK REITs from both themselves and their clients.

Dave Butler, project director of The REITs and Quoted Property Group, says: The results of the second wave of this research do make encouraging reading, but we cannot afford to be complacent as this has to be a long term, ongoing educational process.

Whilst there is clearly much more work to be done by REITs providers and property companies, the growing awareness particularly in the past six months, is certainly a positive.

With the deadline for launch now close, it is imperative that we work together as an industry to ensure advisers, private investors and other financial professionals are fully informed about the new tax-efficient investment opportunities that UK REITs will provide.