It is no secret that the nation is facing a huge challenge: to provide high-quality homes for the future for a growing population.
And readers of EG do not need me to tell them that the build-to-rent sector has become one of the most significant responses to that challenge.
Indeed, with the private rented sector now the second largest tenure in England, you could fairly describe it as the “next big thing” in the residential property market. Not only does investment in the PRS improve the availability of accommodation, but it provides a real opportunity to drive up standards and improve conditions for renters.
The BPF has made the case for a strong and stable build-to-rent sector to government very well over the past few years, with considerable success. Last week we made it the theme of our annual residential conference.
As housing minister Brandon Lewis outlined at the conference, the government has thrown its weight behind improving the sector, with one of the most important initiatives being the creation of the £1bn Build to Rent fund.
It has produced planning guidance that encourages local authorities to include a provision for private-rented housing in their local plans, and made the sector much more appealing to investors through recent SDLT reform. Next month his department will deliver a build-to-rent guidance document for local authorities.
All this is welcome and, in turn, we have seen the property industry rise to the challenge. Innovative joint ventures between institutional investors and developers are springing up left, right and centre.
Both UK and overseas institutions have now invested in build-to-rent schemes.
So, what more is there to do? The mood at the conference was buoyant and, politically, we can see strong cross-party support for the sector.
The answer for both industry and government is this: we need to maintain this momentum. It was great to hear the head of the PRS Taskforce announce at the conference that CLG will appoint a Build to Rent Champion to continue the work of the taskforce once it is disbanded in April. Their advocacy will be vital – particularly if we are to reach the £177bn investment that Allsop’s Paul Winstanley estimated is needed over the next five years to supply the PRS housing needed in the UK.
We need a shared vision. On behalf of our members, the BPF’s vision for the sector is long term. It is about place-making – investing in the communities in which our children and future generations will live. It is about creating shared values and raising standards. We look to this and future governments to share that vision and to commit to taking the actions that will ensure that this asset class continues to be attractive to investors. And we seek confirmation that they will liberate the innovation and talent of the sector rather than try to intervene too much.
There are huge opportunities for local authorities. The most imaginative and forward-looking already understand how a private-rented provision can be both viable and beneficial within their areas and we need to spread that learning and good practice so more communities can benefit.
Melanie Leech is chief executive of the British Property Federation
