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Build to Rent will See Post-Election Growth
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Build to Rent will See Post-Election Growth
The Build to Rent (BTR) sector will experience a growth of new investment due to the Conservatives’ victory in last week’s general election, Savills estate agent believes.
A researcher at Savills, Jacqui Daly, says: “The pent up demand and the weight of capital targeting the sector is likely to lead to more deals closing in the second half of the year.”
She claims the market was tinged with uncertainty during the election campaigns.
She explains: “Our recent survey of leading investment houses identified collective ambition to invest over £30 billion in the UK private rented sector, over 50% from UK investment houses.
“Investment managers represented the largest source of investment capital with an ambition to invest c.£10 billion in the residential market. This investment, backed by institutional clients, needs certainty of income.
“Regulatory and political uncertainty introduces a degree of nervousness and reduces the attractiveness of residential compared to other assets.”1
The Conservatives’ BTR policies during the last Parliament included a £1 billion BTR fund aimed at creating 10,000 homes to rent.
1 http://www.lettingagenttoday.co.uk/breaking-news/2015/5/build-to-rent-set-for-post-election-surge
