Government "ambitious" for private rented sector

Published by Daniel Jones

The government has given landlords around the country a boost by declaring that it is ready to ramp up its ambitions for the private rented sector, which has been the subject of an intense rise in demand in recent years.

Housing minister Mark Prisk, speaking in a speech made at the Royal Institution of Chartered Surveyors' national residential conference, explained 3.8 million households now live in private rented accommodation in the UK, with 1.5 million homes coming into this sector in the last seven years.

He admitted that buy-to-let landlords have been at the heart of this trend, but now is the time for the market to move "further and faster" - and this means introducing "new players" to the industry. Mr Prisk is adamant that the government wants a bigger private rented sector in the years to come, with large-scale investors sure to play a key role.

"Small scale individual landlords have a role of course, but if you look at mature markets such as Germany, Switzerland and the US, institutional investment in the private rented sector is much stronger than it is here. Evidence from those markets shows that where institutional investment is strong, the costs are driven down and the sector becomes more professional," Mr Prisk stated.

The housing minister added that the government has been keen to implement all of the key recommendations set out in the Montague Review. This includes the Built to Rent Fund, which is worth £1 billion in total and has so far proved to be immensely popular with Britons.

Indeed, Mr Prisk told how the bids received in the first round of the scheme were capable of delivering in the region of 10,000 new homes.

Such a scheme could be good news for landlords and investment companies up and down the country, many of whom could take advantage of the government's willingness to help by expanding their own property portfolios over the coming months and years.ADNFCR-1645-ID-801614216-ADNFCR

Published on: July 18, 2013

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