ABSTRACT
The Brown Ban led many developers to turn to the shops market, which appeared to offer high profits and was free of government restriction. As a result of the restrictions the property investment market began a new phase, in which rising institutional demand for office property was met by a limited supply of new developments. Rather than damaging the position of property investors, the 'Brown Ban' marked the start of an unprecedented property investment boom, which was eventually to precipitate the most severe crisis experienced by the British banking system during this century. A more important element of the Act, from the institutional investors' point of view, was the introduction of Corporation Tax, which made direct investment in property more attractive than indirect investment via property company shares, as direct ownership avoided the payment of this tax. The shortage of investment properties during the early 1970s provided a further strong incentive for property company acquisitions.
