Confidence in residential property investment remains stable

Confidence in the benefits of investing in residential property has remained stable since July, according to new figures released by Reita.

The education and awareness campaign for property investment released its findings yesterday, showing over 40 per cent of independent financial advisers (IFAs) think that returns from real estate investment trusts (REIT) will be better than from direct property over the next 12 months.

Only 18 per cent were found to believe that the returns from property securities will be worse than from direct property.

Patrick Sumner, chair of Reita, said it was very encouraging to see the improvement in property market sentiment amongst professional financial advisers.

"But we must ensure that there is also some caution taken," he warned.

"After the last serious recession, rental values fell for nearly two years after capital values started to recover in mid-1993. However, the inflation and interest rate scenario was very different then, and we should prepare for a slower, more gradual recovery this time."

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