The above figures is estimated to be available of institutional investment to build and managed new, purpose built rental properties.
Currently nine million Brits rent accommodation and under this new shift which will see a more professional run market they will benefit from better value, greater transparency and purpose built homes/flats.
Richard Carr believes that a growing demand and current lack of housing presents developers with a fantastic opportunity to create steady and long-term returns. George Osborne’s recent reduction of tax breaks for buy-to-let investors couldn’t have been timelier following the Bank of England’s warning over the risk it posed to economic stability.
Build to Rent
Like the government’s current help-to-buy scheme, it’s expected that the Build-to-Rent initiative will be good for the economy, communities, investors and consumers because of the amount of finance that will surface.
As mentioned above, the scheme could bring in £30bn worth of investment across the next five years, which would allow investors to match to long-term liabilities with stable returns delivered from rent.
Speaking about the report, Housing Minister Brandon Lewis said: “We’re determined to create a bigger, better private rented sector – including encouraging greater investment by professional landlords to build homes specifically for rent”
“Today’s figures show our efforts are reaping results, with over £30billion investment already in the pipeline and nearly a third of new homes planned in London for the private rental market.”
They are well over a dozen high profile schemes linked to build-to-rent which are in process, with 29% of housing starts in the first quarter of this year being homes for rent. It’s expected that renters will soon outnumber homeowners, meaning the delivery of specially built rental accommodation is vital.