The property industry was hoping for progress on tax-efficient vehicles for investment in the sector, in yesterdays pre-budget report. However the government will not legislate for new tax-efficient trusts, which are expected to launch a mass savings market based on property and boost the markets capitalisation, in 2005.

Many had wanted the Chancellor to give details of how these vehicles - known as real estate investment trusts (REITS) - will be structured and some had even expected legislation in 2005.

Instead the Chancellor did not say much about the housing market, devoting just twelve lines to the products, stating that the government will conduct further consultation in time for the next budget report in 2005.

It now appears as though legislation will be deferred until after the next General Election.