Build to Rent development in the capital currently runs at over double that in the rest of the UK. A new manifesto is now calling for more affordable properties to be included in similar schemes.
Construction
At present, there are 14,276 units in planning, construction or completion phases across London, in comparison to 7,112 in the rest of the country, according to data taken from a report by the British Property Federation.
Results also show that there are at least 3,404 completed units in London, compared to just 240 in the rest of Britain.
As a result, the organisation has released a new manifesto for the Build to Rent Sector, in which it calls on the Government to follow the lead of the Greater London Authority, by changing national planning policy. The BPF feel that the appropriate affordable housing on new Build to Rent developments should be discounted market rent.
The British Property Federation has long supported the role Build to Rent has to play in improving housing delivery, attracting long term investment that can potentially boost housing supply.
Deliverance
Research indicates that Build to Rent can deliver homes at 2.5 times the speed of developments for sale and there is £10bn of firm commitments. In addition, there is as much as £30bn that the sector has ready to invest during the length of this Parliament. Experts suggest that the £10bn of investment identified for Build to Rent would create around £28bn of wider financial and economic benefit.[1]
Melanie Leech, chief executive of the British Property Federation, said, ‘it has felt for a long time that Build to Rent has been on the cusp of becoming a sector in its own right. Today, we are proud to show that the sector has really taken off, and it is great to see how many fantastic projects are either underway or completed and that residents have quality rented homes.’[1]
This said, she believes that, ‘there is more that can be done to encourage the sector to grow. The GLA has paved the way for Build to Rent, introducing both ambitious targets and supplementary planning guidance and the map launched today shows that this has really paid off.’[1]
‘The Government has everything to gain from encouraging this sector, which will attract significant institutional investment into UK housing supply, deliver new homes quickly and drive up standards in the private rented sector and we hope to see it continue to support it,’ Leech concluded.[1]
Reality
Andrew Stanford, residential fund manager at La Salle Investment Manager and chairman of the BPF’s Build to Rent Committee, noted that momentum behind Build to Rent continues and its moving from theory to reality.
Stanford noted, ‘with continued support from both national and local government this progress can continue. The growing number of long-term institutional investors in the sector will then find a suitable home for their capital, ensuring that housing supply and tenant choice can increase.’[1]
[1] http://www.propertywire.com/news/europe/uk-build-rent-sector-2015102111117.html