private rented sector
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Housing Market
Stimulating institutional investment is key to success of PRS
London property consultancy Daniel Watney LLP is calling on the Government to encourage further institutional investment as a means of improving the private rented sector, rather than relying on extra regulations for landlords and agents. It is well documented that significantly more new build homes are needed to help solve the UK’s housing shortage, and Daniel Watney believe that new funding from institutional investment can play an important role in contributing to the rise in housing supply, as well as addressing pricing issues in the housing sector. The comments come ahead of the Department for Communities and Local Government launching a new consultation on how to best tackle to rogue landlords and drive up standards in the private rental market. Julian Goddard, head of residential at Daniel Watney, said, “As the consultation paper itself acknowledges, rogue landlords are very much the minority, with the overwhelming majority of tenants satisfied with the accommodation and service they receive from their landlord. “The best way to improve the private rental market is not to burden landlords with excessive regulation, as the proposed immigration checks will do, and to encourage further institutional investment, which will allow for more purpose-built rental accommodation to be built,…
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Housing Market
PRS set to soar
The private rented sector (PRS) is expected to increase by 700,000 households to 5.5 million by 2020, accounting for one-fifth of the total housing stock in this country, according to a new report. A fresh study on the buy-to-let sector by Kent Reliance finds that the PRS now accounts for 18 per cent of all housing stock, after almost 150,000 new households were added to the PRS in the year to March. A higher number of buy-to-let investors entering the market coupled with capital growth have led to an average rise of 11 per cent in the total value of PRS property, or £97.8 billion, to £990.7 billion, with gains led by London, at £406.5 billion, followed by the South East at £147.6 billion. Andy Golding, Chief executive, Kent Reliance, said, “Buy-to-let has come of age, moving from a niche asset class to one big enough to rival the stock market. Landlords are seeing the benefit of a structural change in Britain’s housing market, with tenant demand ever strengthening. Yes, house prices are showing signs of steadying somewhat, but growth remains brisk.” If recent growth continues, the whole sector is set to be worth in excess of £1 trillion by…
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Housing Market
Labour plans for PRS would be disastrous – NLA
Labour’s plans to cap rents, ban letting agent fees, and restrict tax reliefs for landlords who do not keep properties to basic standards could have an adverse impact on the private rented sector (PRS), according to Richard Lambert, Chief Executive Officer at the National Landlords Association (NLA). While acknowledging that Labour has tenants’ “concerns at heart”, Lambert points out that the policy will almost certainly backfire because “they don’t understand the economics of supplying private housing to rent”. The NLA’s CEO (left) insists that these changes “will have far-reaching consequences for the PRS”, and could deter many people from investing in the buy-to-let market which in turn would reduce the supply of housing stock in the PRS. He commented, “If these proposals are going to be rushed into the first Queen’s Speech, less than a month away, without time to think through the consequences, Labour’s good intentions could make the housing crisis worse, not better.” NLA research has found that around two-thirds of landlords do not increase rents during a tenancy. Lambert continued, “Capping annual price rises to inflation sounds like a great consumer protection initiative, but wherever these formulas have been introduced, it’s proved to be counterproductive because it…
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