A recent Treasury paper revealed that the government is to start industry wide consultations on Real Estate Investment Trusts (REITs), with the aim of their introduction by 2006.

REITs allow ordinary savers as well as institutional investors to invest in property easily without actually owning the property.

REITs work as stock exchange-quoted companies that own the properties and investors then buy shares in the company. Smaller scale investors can have access to commercial property returns without significant capital outlays or tax inefficiency by using REITs.

Some industry consultations have already taken place over the last year so the announcement is being taken as a sign the Chancellor is now positive about the move.