Reviews Into The Private Rented Sector and Build to Let Opportunities
Grainger Plc's Review Calls for Built to Let Opportunities
The government review into 'Barriers to institutional investment in the Private Rented Sector' was part of the Housing Strategy and was published in November 2011. It looks at ways to encourage investment in build to let homes.
Small landlords are dominating the sector with only 1% of private landlords owning more than ten properties. As Graingers review said, "Small landlords can flexibly invest their own time with low overheads; respond to market signals; and spread risks over local markets. Larger enterprises have higher costs and need larger, concentrated, standardised holdings. The difference is most clearly seen in student housing but also exists elsewhere"
Housing Minister, Grant Shapps said, "Over 3m households live in privately rented homes, so it's vital that we take steps to ensure the sector's continuing growth and affordability".
The Montague Review into Build to Let Housing
The review builds on previous government strategy including changing the stamp duty imposed on those purchasing in bulk, reforms to residential Real Estate Investment Trusts and the private rented sector initiative.
Sir Adrian plans to submit his results and recommendations on the opportunities for build to let to ministers in June 2012.
Savills and Rightmove have recently published their review of the private rented sector in Britain which says "The biggest challenge is supplying rising demand, forecast to rise to one in five households by 2016, requiring an additional 1.1 million homes in the sector"
According to the report, "rental Britain is here to stay".