Finance Bill
Brooks Newmark calms concerns about the effect of REITs on property prices.
Mr. Newmark: I have been thinking about the question asked by the hon. Member for Wolverhampton, South-West (Rob Marris). I know a little about REITs, although I have never invested in them myself. The hon. Gentleman was concerned about the causal effect of REITs on property prices, but there is not any evidence whatsoever of property price inflation caused specifically by REITs. There is enormous price inflation in France and other European countries that do not have REITs, so there is not any evidence of cause and effect. It is important to make that point clear.
The First Deputy Chairman of Ways and Means (Sylvia Heal): Order. For the benefit of new Members, may I point out that interventions are meant to be quite brief?
Mrs. Villiers: I am grateful to my hon. Friend the Member for Braintree (Mr. Newmark) for his well-informed contribution. It would be extremely useful if the Government produced some research and analysis, as we need to consider the issue, and that would assist our assessment of the Bill. I shall conclude on that point, and emphasise the fact that the amendments are simple measures that would create a great deal more tax certainty for a valuable new form of investment. They would encourage investment and savings, and they would offer considerable assistance in ensuring that our global financial centre in the City of London remains as competitive and successful as possible.
