Build to rent push would unleash £30bn for housing

Aaron Morby 5 years ago
Share

Developers, pension funds and housing associations claim the next Government could count on £30bn of private finance if it promotes housing for long term rent.

This would be enough to build more than 150,000 homes and ease pressure on the rental market – the fastest growing tenure in England.

In an open letter to the next government, supported by the British Property Federation, the Better Renting for Britain campaign says the Build to Rent sector could play a pivotal role in solving the housing crisis.

It calls for a five-point stimulus to create an American-style rental market where single companies own large portfolios of homes.

Build to rent stimulus

  • Councils should identify how much rented housing they need and allocate land to it. It can ensure that housing is rented and not sold by agreeing covenants with developers.
  • Idle public land should be used to generate income for councils by developing rental blocks.
  • A modernised approach to affordable housing which recognises the wholly different funding structures relating to build to rent compared with housing for sale.
  • The sector to continue operating as a free market, which is vital to securing investment.
  • Work with us to promote best practice, better inform the public and help improve the perception of the entire rented sector.

“We want to create more professionally managed rented housing, purposefully designed and built with the long term occupier in mind,” the letter said.

The offer of longer-term tenancies, inflation linked rents and shared amenity spaces would be made possible because investors were seeking to earn an income – rather than speculating on house prices going up.

“We need genuine acceptance that Build to Rent differs from traditional housebuilding,” the campaign adds, referring to the fact that schemes built for rent are currently treated by planning policy in the same way as those built for sale.

The campaign wants the government to make councils set out the quantity of rental housing needed locally and then partner with developers to build some of it on public land.

This could create income for local authorities. It also wants planning rules modernised to reflect the fact that building for rent is wholly different from building to sell.

The group also wants a commitment to market economics to ensure vital new investment isn’t put at risk.

Martin Bellinger, chief operating officer of Essential Living, said: “Smart phones, taxi apps and the sharing economy have disrupted many things in recent years and now it’s our turn to positively disrupt the housing market.

“Renting can and should be about making people’s lives easier, offering them value for money and long-term certainty enabling them to create a home. By taking a long term view, we can do this and offer the next government a vital additional source of finance.”

Nick Jopling, executive director for Property at Grainger plc, the UK’s largest listed residential landlord, said: “By supporting ‘build to rent’, the future British government can encourage companies like ourselves to help increase housing supply and improve standards of living in the rental market.”

Latest news

Multiplex set for massive Elephant & Castle win

Contractor tipped to beat off competition from Mace for one of year's biggest building awards
3 hours ago

Opinion: Now time for Boris to prove his worth

Prime Minister must stick to promises as Labour needs a radical rethink
1 hour ago

132 jobs saved as collapsed scaffolder Acorn pre-packed

Former directors of Acorn Scaffolding (Yorkshire) buy assets for £110,000
12 mins ago

Balfour Beatty creates new technology chief role

Chris Johnson promoted to new strategic role reporting directly to Leo Quinn
2 hours ago

Eutopia Homes advances debut £105m Salford scheme

Former Essential Living boss lodges plans for first of three schemes worth £365m
2 hours ago

Costain profits slashed after road row ruling

Profit forecasts halved following legal U-turn over Welsh road dispute
24 hours ago

Balfour Beatty to exceed 2019 profit forecast

US probe into falsification of maintenance records extended to all 21 US air force bases
1 day ago

40 jobs axed as Leeds firm RDF Building collapses

Third east coast contractor sinks in less than 10 days
1 day ago

Dramatic crane collapse video shows site damage

Footage reveals aftermath of Kingston crane failure
1 day ago

Plans submitted for London ‘hanging gardens’ tower

36-storey 50 Fenchurch Street tower will feature huge green wall
1 day ago

Balfour gets go-ahead to restart Midland Met hospital

£267m contract award to restart job hit by Carillion collapse and funding wrangles
2 days ago

Vinci clinches Staffordshire Uni £40m skills hub

Work will start this spring on the Catalyst building in Stoke on Trent
1 day ago

McAlpine wins November contracts league race

BAM stakes claim as new favourite to be crowned 2019's greatest work winner
2 days ago

Tower crane in London collapses in high winds

Jib snaps on residential site in Kingston
2 days ago

Costain offloads Spanish golf courses for a loss

Costain to book £8.9m loss from sale of golf course and marina
2 days ago

Yorkshire Water names final AMP7 framework winners

Nine firms to share £650m clean and waste pipe spend
2 days ago

Balfour Beatty extolled as Britain’s most admired contractor

Business chiefs judge major contractors to find most admired firms
2 days ago

Amey chief executive Andy Milner exits

Amanda Fisher, MD of FM business, takes role of acting CEO
3 days ago

London council starts £520m housing upkeep contest

Lambeth to overhaul housing maintenance with new contractor line-up
2 days ago

£340m northern new-build framework winners

Six firms secure affordable housing major project lot in Yorkshire and Humberside region
3 days ago

Bad weather bogs down construction output

Construction suffers biggest monthly output fall for nearly two years
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

86 jobs cut as North East civils firm goes under

Joyce Construction & Civils is latest casualty of tightening market
4 days ago

Sewer breach sweeps away three workers on Tideway site

Court fines Thames Water Utilities £300,000 after Greenwich accident
3 days ago

Plans lodged for £30m Teesside indoor ski centre

Three-storey complex to be built at Middlesbrough Dock in Middlehaven
3 days ago

Willmott Dixon wins £18m historic London school rebuild

Historic St Dunstan’s College Lewisham site tol be redeveloped
3 days ago

Train narrowly misses trapped concrete mixer on crossing

Amey site staff beckoned truck onto crossing as warning lights flashed
3 days ago

Plans for Manchester Metropolitan Institute of Sport

Eric Wright has drawn up demolition and construction management plans
4 days ago

Clugston debt rumoured at over £40m

150 immediate job cuts with 262 staff retained to help sale of contracts
4 days ago

Contractors rally to help Clugston staff facing the axe

Trade body calls on firms to offer laid off staff jobs in run up to Christmas
7 days ago

Contractor services