The government’s failure to acknowledge the role of the private rented sector in addressing the national housing shortage should not undermine the progress made in the sector since 2012’s Montague Review.
The launch of the British Property Federation’s residential manifesto shows the continuing need for pressure from the industry, but its accompanying research also shows at least 15,000 build-to-rent units under management or being built around the UK, and thousands more in the pipeline.
What may be a drop in the ocean compared with national housing totals still has more than £30bn in prospective investment, and as our timeline shows, activity in the sector has ramped up massively in the past three years.
2000
Number of households privately renting surpasses 2m in England – 10% of market. Owner occupation stands at 70%.
2004
The Barker Review of Housing Supply. A key acknowledgment of the structural shortfall in UK house building. It encouraged the introduction of REITs to increase residential investment in the PRS.
2006
REIT legislation announced in the Finance Act, allowing UK property companies to convert. Rules stacked against regular asset trading make residential REITs unviable.
2007
Beginning of the financial crisis: Affordability of houses drops as lending rates rise. Grainger sets up UK’s largest UK PRS fund to date – G:res1.
2008
Rugg Review: The CLG-commissioned review examines the status of the UK’s private rental market, how best to improve management and quality, and how to increase the affordable component.
2009
Number of households privately renting tops 3m. PRS Initiative: Bob Kerslake and the HCA continue to promote investment into the PRS, ensuring there is still government enthusiasm for the sector.
2010
HM Treasury review: Investment in the UK private rented sector – wide-ranging review of the barriers to build to rent.
2011
March: Stamp duty concessions on bulk purchases allow stamp duty to be applied on the average price of individual units in a bulk purchase, not the aggregate value.
2011
August: Qatari Diar and Delancey buy the London Olympic Village, E20.
2011
November: Government housing strategy released – says it wants to encourage more investment into the PRS.
2012
Private renters overtake social renters as the second-largest housing tenure after home ownership.
August: The Montague Review – an extensive consultation on the build to rent sector.
2012
October: Essential Living is set up and becomes one of the first new operators in the UK rental market, backed by M3 Capital.
2013
March: Andrew Stanford appointed to lead the PRS taskforce; £200m build-to-rent fund expanded to £1bn by chancellor George Osborne.
2013
April: M&G announces a return to the residential sector.
2013
November: Mayor’s draft London housing strategy is published, with provision for 5,000 rental homes in the city-wide target of 42,000.
2014
Renting households top 4m in England, making up 19% of the market. Owner-occupation declines to 63%.
Investment into the PRS gathers pace, with deals announced by Grainger, M&G, Fizzy Living.
2014
December: Government launches £3.5bn housing guarantee scheme through PRS Operations, an arm of Venn Partners.
2015
Patrizia, LaSalle Investment Management, Apache and L&G announce PRS investment drives.
May: Draft planning guidance from the GLA recommends rental covenant and special consideration for affordable housing commitments.
2015
June: US giant Greystar announces plans to push into UK PRS. Investment finance looking to gain entry to the PRS tops £30bn.
2015
October: Housing and Planning Bill The Conservative majority government firmly establishes its commitment to home ownership through an expansion of Right to Buy and starter homes.
