BPF says Build To Let is big opportunity for PRS

The British Property Federation has joined the call for more incentives to create a large scale Build To Let market in the UK.

Echoing two analyses reported earlier this week by LAT, the BPF's own new research shows that eight per cent of new homes built in London in the past year have been given over to Build To Let - the structure whereby investment institutions pay for construction and retain ownership of blocks, renting them out to tenants.

The BPF praises London mayor Boris Johnson for making a target of 5,000 Build To Let units as part of his annual target of 42,000 new homes in the capital.

The BPF says some early investors in Build To Let in the capital - such as Get Living London, Essential Living and FizzyLiving - have raised standards by introducing long-term tenancies, abolishing fees for tenants and creating more professional block management.

Michela Hancock of Bozzuto, a US Build To let brand, told a BPF conference this week that institutional investment represents a massive opportunity in the UK private rented sector to move towards a large scale, efficient model that includes professional management and maintenance on site, customer service that responds to renters' needs and creates a community within the scheme.

This customer-service model, common in residential renting in the US, already exists in hotel and student accommodation in the UK but has not yet become part of the mainstream resi lettings landscape, she said.