EG RESIDENTIAL SUMMIT: The build-to-rent sector could provide greater gross development values than the build-to-sell model by 2023, a residential investment expert has said.
Speaking in a panel discussion, Andrew Boyd, residential investment and development partner at Allsop, said: “Looking at London, prime isn’t the place to go. At the same time, is there much value left in outer London? If help to buy is turned off, where does the market go from there?
“In five years’ time, for those chasing value, the GDV across the build-to-rent sector may look better value than the build-to-sell model.”
The slowing of the buy-to-let sector, caused by changes to stamp duty, added red tape such as energy performance certificates, and other factors, has given rise to a professionalised build-to-rent sector, Boyd said.
In 2013, build-to-rent was not well-known, but today, according to the latest BPF statistics, more than 100,000 units are now planned, with around half of those in the capital.
Boyd said: “The build-to-rent sector will find its feet in terms of amenity and management.”
It “makes a huge amount of sense across outer London”, he added.
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