Property chiefs have welcomed the government’s speedy response to the Montague Review but questioned whether this week’s new planning policies go far enough.
Among the initiatives announced by prime minister David Cameron on Thursday, were several changes based on Sir Adrian Montague’s two-week-old recommendations to kick-start the private rented sector.
The government measures include a £200m equity fund to help enable the initial construction phase of schemes; a new PRS taskforce; the waiving of affordable housing requirements for developments with viability issues; and a £10bn debt scheme to underwrite new private rented housing projects.
The quick response is a stark contrast to the six months it took ministers to respond to the recommendations made in the Portas Review.
Nick Jopling, Grainger executive property director and member of the Montague Review group, said the speed of the government’s response “must be a new world record”.
“These measures mark a fundamental shift in the housing market towards renting becoming a more prominent and acceptable form of housing in the UK,” he said.
But Andrew Brentnall, Savills head of funding and development, said the government could have done more to support the fledgling sector.
“The additional 5,000 homes target only scratches the surface of PRS demand and its potential to boost the construction industry.
“Products such as debt guarantees could be a major benefit, but only if those institutions funding the projects directly are able to deliver viable rates and government allows adequate flexibility to support a range of delivery partners.”
British Property Federation chief executive Liz Peace added: “Taken together, these measures will certainly provide a shot in the arm for house building. However, they will solve housing issues only if accompanied by a package of other measures.”
jack.sidders@estatesgazette.com
