When explaining the importance of PRS on a UK-wide scale, my first instinct is to rail against a lazy and unhelpful acronym that is the latest addition to the lexicon of industry jargon.
As far as I’m concerned, we are unlikely to soften the idea of “private rented” property by giving it a poor descriptor.
At Miflats, we have chosen to think outside the TLA (three-letter acronym) box, and instead look at our business from the perspective of the people living there, adopting a more consumer-focused approach that is entirely centred on the end user.
If we, as an industry, are to solve the housing crisis in the UK we have to consider the journey people are going to take in life. We need to provide a professional service that dovetails into that journey. Several key issues need to be at the forefront of the development of this sector, and it is not just about building out more stock.
We are not asset managers, we are service companies, and our raison d’etre is to deliver just that, service.
The most successful operators will:
- Understand how and why people make choices about their personal and professional lives which we need to fit into
- Recognise that we are likely to become an integral part of their lives for quite some time
- Need to think “service” before we think “asset”
We have a mantra in Miflats: Life. Style. Choice.
It is not: Yield. Void. Gross to net.
It is alarming that a vast majority of the sector remains fixated on the bottom line and not the reason that delivers it. People (you remember them, we used to call them tenants, and some still imagine that this is what we mean when we say asset) are incredibly well connected and can influence a wide number of people’s thinking just by sending a tweet, or commenting on Facebook. They recognise that if you want service you can hold the service provider to account via social media and other channels.
The significance of this sector on a UK-wide basis is that we have the potential to shape the way people live for the next generation. If the industry responds well to the challenge, we will have made a significant contribution to the fabric of life in the UK (and hopefully some money along the way). If we get it wrong, we risk damaging our reputation and being held responsible for social and economic problems that could take decades to unwind.
To get it right will involve being intelligent and responsive to a demand for a service that just so happens to be delivered in a property called a flat or a house. I see a future where people can expect to have a close relationship with Miflats, or Fizzy Living, or Essential Living and we respond by rewarding their love with a fantastic Life. Style. Choice.
Iain Murray is head of PRS at Criterion Capital
