Build to rent is ‘next big thing’, says Grainger boss
Will be interesting to see Sir Adrian Montague’s report when it comes out in June, to see what recommendations he has.
Developers are to be encouraged to build new housing estates where all the properties will be for rent, not sale.
The idea, currently being explored by the Government, could mean the introduction of a separate planning class for new-build residential property that will be rented out, and would mark a fundamental shift in the structure of the UK housing market.
Institutions and property companies would own, and trade, these ‘build to rent’ developments.
Asset management company Schroders believes that this buying and selling activity between profit-chasing corporates would mean that property prices in this particular sector would be highly competitive – possibly resulting either in more competitive rents on ‘build to rent’ estates or in a higher specification of facilities.
The idea has been floated after research by Grainger, the country’s largest listed residential landlord, highlighted the huge shift in public opinion over home ownership versus renting.
Read the full story at LettingAgentToday.co.uk