Housing minister Christopher Pincher has declared his support for the build-to-rent sector and called on developers to provide even greater diversity through the asset class.
Pincher said: “We want to see more investment in alternative tenures and housebuilding at every level. This is really important, we want to see the market diversify even more than it has over the next few years.”
The housing minister dedicated the majority of his keynote speech at the MIPIM Leaders’ Perspectives Summit to praising the “resilient” sector – acknowledging high rent collection and occupancy during the pandemic. He said BTR investment “is rejuvenating land, having languished in the post-war period”.
Pincher added: “Given this sector’s resilience in what has been a pretty turbulent year. It is clear to me that there is real growth potential in it for investors, developers and builders and I think we will be hearing and seeing more about that robust investment in the coming years.”
His comments follow ongoing support for the private sales housing market, but with little policy to support BTR.
Earlier in the month, housebuilders were bolstered by an extended relief from stamp duty and backing for 95% mortgages. However, the BTR sector still pays SDLT and VAT that the for-sales market does not.
Following the Budget, Grainger chief executive Helen Gordon reiterated calls for the government to support BTR. “There are opportunities for levelling the playing field for major build-to-rent investors in tax treatment… which would help stimulate housing supply rather than just housing demand,” she said.
“We are in the midst of a housing crisis and, for many, buying is not an option right now; either due to lifestyle choice or financial reach. And we know that more people rent during economically uncertain times.”
Gordon was one of a number in the sector highlighting the importance of BTR in a downturn.
In his speech Pincher said: “BTR operators have shown a strong focus on building communities providing more than just a house or just a flat.” He added that a focus on placemaking, amenities and public services would be “even more important in the post-Covid era”.
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