European integration was generally viewed as facilitating greater cross-border property investment. The need for increasing diversification of property investment, thus reducing risk, could be progressed through greater European property investment by UK Institutions. This process could in turn assist in reversing the trend over the last 15 years of an ever reducing proportion of new investment into the property sector. What has occurred in practice has been significantly different. Empirical research supported by statistical returns have demonstrated that there has been limited Institutional Investment by UK Institutions to date. Furthermore the prevailing attitude of decision-makers indicates that a low appetite for European property is likely to remain. The paper analyses the returns of 37 major UK investing institutions and concludes with a resume of the major factors accounting for this disinterest and suggests what barriers to greater property investment in Europe exist.

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