As reported by Property Wire the UK Government is backing plans to improve the private rented property sector.
The UK government is taking major steps to change and encourage a bigger and better private rented property sector and has announced a raft of new measures. A Private Rented Sector taskforce has been set up on top of a £1 billion Build to Rent fund which offers finance for house builders looking to build homes specifically for private rent. There will also be up to £6.5 billion of loan guarantees available for organisations to invest in new privately rented homes.
The Private Rented Sector Taskforce, headed by Andrew Stanford, aims to be bringing in more large scale, institutional landlords to encourage competition and get higher quality homes onto the market. Housing Minister Mark Prisk said it is already working closely with potential investors from across the housing community, not only to increase demand for the new rental sector, but to shape the government’s policy around it.
They’re finding out exactly what needs to happen to create a sector with a long term future, from planning and regulation issues to simply cutting bureaucracy. Kick starting a whole new market by 2015 is no mean feat, but the Taskforce are making an excellent start,’ he explained.
Already the team has helped and advised applicants for Build to Rent cash alongside the HCA, and the first deals for the fund should be signed later this summer. They have also met with close to 200 private rented sector partners and are now encouraging bids for a second round of Build to Rent and our loan guarantees.
For many years now, successive Governments have shifted focus between affordable housing and private ownership, with the privately rented sector frequently overlooked.
Unlike markets overseas, there is next to no market in the UK for large scale, professionally managed rental developments,’ he pointed out. ‘I’m confident that we can leave a lasting legacy for both investors and tenants, driving up quality across the board and building the homes this country needs,’ he added.
