'Indiscriminate' shorting blamed for REITs slump

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Aggressive short-selling in the property investment sector is a "major factor" behind its current volatility with experts describing the trend as "unsettling", according to Reita.

The education and awareness campaign for property investment and real estate investment trusts (REITs) says the property sector struggles with this investment tactic because “as a whole it is not very liquid”. Almost half of the 24 members of Reita also argue the UK is now headed for a recession, just three months after only 27% of them held that belief, and expect interest rate cuts ahead. The performance of UK property companies, including REITs, has been volatile and 60% of Reita’s expert panel blame shorting. “After range-trading for the first four months of the year, property sto...

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