Build-to-let will be crucial in meeting the UK’s future housing need, Housing Minister Mark Prisk and Shadow Housing Minister Jack Dromey will tell the British Property Federation (BPF) Residential Conference today as they underline the government’s support for the growing sector.
Prisk will say that the government’s flagship build-to-let policy – which provides a £10 billion debt guarantee and a £200 million equity finance for house builders and developers – will encourage a wider range of investors to build homes for private rent.
With the government measures aimed at boosting the construction of homes specifically for private rent, and the first build-to-let deals being announced, the BPF says 2013 shows signs of being a breakthrough year for the private rented sector. Data shows that over a 10-year period residential property delivers better long-term value for growth than any other investment asset.
The BPF was part of the nine-strong industry panel that advised the Government commissioned review into why institutions did not invest in rented housing, led by Sir Adrian Montague.
The BPF has urged the Government to accept all the review’s recommendations, including providing local authorities with specific guidance on the planning treatment of build-to-let which clarifies that local authorities are able to take into account viability considerations.
Dromey will say: “Labour’s vision for private renting is of a strong and vibrant sector that is able to attract investment for the long-term but also a reformed sector that meets the needs of those living in it now and in the future, who do not want or currently cannot buy their own home.
“We do not see greater protections for renters and landlords in the sector as a barrier to investment but a pre-requisite for it. If the private rented sector is to be one of choice it must meet the needs of those living in it not least the 1.1 million families with children.”
Sir Robin Wales, Mayor of Newham, will say: “Newham’s vision is of a private rented sector that works for everyone – landlords can make a good return in a well-supported and professional sector; tenants have stable and good quality accommodation and the borough becomes a more attractive place to live and invest in.”
Sean Oldfield, chief executive officer of Castle Trust, will say: “UK housing has provided excellent risk-adjusted returns over the years but investors have previously only been able to access it through buy-to-let. Providing accessible, diversified investment opportunities in a tax-efficient manner is critical to help unlock the UK’s biggest asset – residential housing – for retail investors.”