Members of the property industry are today urging the Government to encourage property investments by big investors Â to support â€˜build to rentâ€™ schemes.
The Montague Review is looking at whether there are barriers preventing institutional investment in the private rented sector, on the basis that more rental accommodation is needed than the existing buy-to-let sector could supply.
A response by the British Property Federation, Association of Real Estate Funds and the Investment Property Forum says that big investors could be interested in the sector if there were legal S106 agreements in place, which would ensure that all properties on a development would be rented out for at least 10 years and not sold. It also calls for this type of housing to be recognised in the National Planning Policy Framework, so that local authorities could meet housing need through â€˜build to rentâ€™ schemes.
We at www.http://thehousecrowd.com/thehousecrowd/ think this news is fantastic â€“ a great way to entice much needed property investment into the sector, while meeting current housing needs at the same time. While this model focuses on building new properties to meet demand, The House Crowd model concentrates on breathing life back into repossessed or distressed properties. Our model will not only bring old housing back onto the market, it will also give high property investment net yield to our investors; and with our low capital investment of just Â£1,000, we are even a great savings alternative for first-time buyers trying to gather their deposit!