UK Government Boosts Build to Rent
A £45m cash injection has been announced by the UK Government to kick-start the construction of 2,000 build to rent homes.
As the Government clamps down on the buy to let sector, it has announced that it will be driving £45m of its £3bn Home Building Fund, in a move to create a “bigger, better private rental market”.
The deal is one of the largest for the private rental sector in the UK, and is focusing on creating thousands of homes in Leeds, Birmingham and Manchester.
Housing Minister, Gavin Barwell, is also confident that it will “create jobs and opportunities for many hundreds of people”.
Along with the £45m from the Government, funds from HSBC will also be used to back the £400m project. 995 of the purpose-built housing units will be in Manchester, which has the highest rental yields in the UK outside of London: 774 more will be built in Leeds, and 323 in Birmingham.
In the Autumn Statement, issued in November, it was also announced that letting agent fees for tenants will be scrapped. This is just part of the Government’s plan towards tighter regulations, and improved quality in rental accommodation for the £5.4m households who rent across the UK.
Built To Rent To Replace Buy To Let
These plans follow on from George Osborne’s clampdown earlier in the year, ending mortgage tax relief and raising stamp duty. Both moves were intended to curb investment into the buy to let sector, and these latest moves demonstrate a new focus on build to rent, which Knight Frank estimates will be worth £50bn by 2020.
The private rental sector in the UK is at an all-time high, and showing no signs of slowing down. As prices on residential property continue to skyrocket, it has never been more important to invest in new housing across the country.
The building and development of properties for the rental market, is one of the key aspects of our work at The House Crowd. Along with offering a more democratised property investment market for those seeking to raise capital through property, we are also confident that our investment opportunities are doing a great job in providing high quality accommodation across the rental sector in the North West of England.