Former Conservative housing minister Mark Prisk says the recent clampdowns on the traditional buy to let sector may end up helping gthe fledgling institutional Build To Rent industry that is now emerging in the UK.
Prisk, according to the investment website realestate.ipe.com, told an event organised by LaSalle Investment Management that it was now widely accepted that buy to let activity “cannibalises rather than adds to the private-rented sector”.
Prisk, described as an adviser to Build To Rent operator Essential Living, said a credible alternative to becoming a landlord was needed for those approaching retirement and seeking an investment opportunity.
LaSalle’s UK residential fund manager Andrew Stanford told the same event that his firm aimed to invest £500m in Build To rent as soon as late 2016. It has now appointed Savills as property manager for its UK portfolio, including a new £60m 292-unit scheme in Aberdeen - its most recently-announced project.
“The industry is supportive of the sector but the biggest challenge now is winning the hearts and minds of council officials and the electorate” Stanford told the event.
Ian Fletcher, director of policy for real estate at the British Property Federation, agreed prospective investors, local council authorities and tenants were still in need of educating because of their “lack of familiarity” with Build To Rent.