GREEN LIGHT FOR BUILD TO LET

Build to let will be crucial in meeting the UK’s future housing need, Housing Minister Mark Prisk and Shadow Housing Minister Jack Dromey told the British Property Federation Residential Conference today as they underlined the government’s support for the growing sector.

Prisk said that the government’s flagship build to let policy – which provides a £10bn debt guarantee and a £200m 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, 2013 shows signs of being a breakthrough year for the private rented sector. Data shows that over a ten year period residential property delivers better long-term value for growth than any other investment asset.

Jack Dromey, Shadow Housing Minister, supported the move: “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.”

BPF member Mark Dickinson, Managing Director Development at Lend Lease, explained the significance of this announcement: “There is cross-party consensus that the UK urgently needs more homes.  Changing demographics mean we face both an expanding and an ageing population, yet with continuing economic uncertainty there is less public funding for house-building programmes and more people struggling to get on to the property ladder.  Potentially, the private rented sector could play an important role in meeting the UK’s housing needs and if this is to be the case then it is crucial that we find the means to deliver high quality, sustainable homes through partnerships and institutional investment.”

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 public-private partnership expert 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.