Could Build to Rent Developments be the answer to the UK’s Rental Property Shortfall?

29 February 2012 Categories: News

Could Build to Rent Developments be the answer to the UK’s Rental Property Shortfall?

According to a report released by Grainger, the UK’s largest listed residential landlord, the current problem regarding the serious shortfall in private rental property is being looked at by the government in a number of ways…including the possibility of new property developments that are exclusively for rental purposes.

The report interviewed a wide range of individuals who gave their views regarding the future of renting, and how they saw the popularity of long-term renting. Over 65% of those interviewed said they thought long-term renting would become the norm over the next 20 years, while nearly 55% said they thought more people would be living in rented property than owned property in 15 years’ time.

Based on the figures in the Grainger report the government is tentatively encouraging property developers to consider building housing estates on which the properties are exclusively to rent. Given the right incentives it may be that a few of the large property developers turn to build to rent developments, maybe with a view to selling the properties at the end of a fixed rental period.

With the average first-time buyer age creeping into the mid-30s a solution to the on-going shortage of private rental property needs to be found soon, and it might be that the government are on the right track with their build to rent development idea.