In the UK we love property. For most people, the biggest asset they’ll ever own is their house, and buy-to-let investing has become somewhat of a national pastime.
Ask most people if they invest in stocks and shares, and the answer is usually “no, it’s too risky”. But ask them if they invest in property, and if they’re not already a buy-to-let investor, the chances are they’ll say they want to be – although whether or not this remains a sensible option with interest rates where they are today remains to be seen.
If you need evidence that the UK loves property more than anything else, consider that the value of the UK’s housing stock hit a high of £8.7trn last year, according to real estate firm Savills. That’s around three times the size of the UK equity market (£2.4trn at the end of February 2023) and pension savings (around £3trn).
Yet while the UK loves to own and invest in physical property, real estate investment trusts (Reits) are often overlooked, despite offering attractive tax treatment, solid income and a useful way to diversify a portfolio.
Fully tax-free income in an Isa or Sipp
The UK’s Reit regime was launched in January 2007 as part of a drive to open up the UK’s financial markets to international investors. While they are
