A coalition of housing associations, pension funds and other investors have offered up to œ30bn to be used by the next Parliament for the construction of around 150,000 new homes for the rental sector.
In an open letter to the next Government, the Build to Rent group claims œ10bn of potential investment has already been identified by the Private Rented Sector (PRS) Taskforce – part of the Department of Communities and Local Government (DCLG) – with more ?waiting to come into the sector’.
In return for the œ30bn figure, which is based on primary data from surveying investors Savills, Build To Rent is calling for a wider acceptance of the need for new homes to be built solely for PRS. It is also asking for acknowledgment of the differences between building homes for rental and traditional house-building, such as the increased need for communal spaces.
In addition, the letter calls for the new Government to implement a national policy that would see local authorities identify land for rental properties; support collaboration between a Build to Rent industry team and councils; ensure the sector operates as a market for the purposes of securing investment; and help improve the public’s perception of PRS.
Claiming that one in five households are renting privately, Build to Rent says now is the time to recognise and promote PRS as a ?vital source of new housing supply’. Without its development, the group believes the new Government’s ?promise of substantially increasing housing supply will remain out of reach.’
The letter also claims that a thriving PRS would attract investment from around the world, particularly the US, Europe and Scandanavia.
To read Build to Rent’s letter in full, click here