The number of people renting in the UK continues to grow. According to Knight Frank, an additional 560,000 households will live in the rental sector by 2023. Build to Rent developments are increasing, but a recent poll by Deltapoll revealed three-fifths of the British public haven’t heard of it. And for those who have, less than a quarter know what it is.
Representatives from MHCLG, Homes England, the GLA, and the British Property Federation took part in the discussion held by Build to Rent online search platform, Love to Rent, and consultancy, ARCADIS. They met to determine what the sector needs from the new government.
The event comes weeks after Love to Rent and Arcadis signed a joint letter along with others in the sector, calling on the Prime Minister to appoint a Minister for Renting in his cabinet. The letter highlighted the government’s current emphasis on homeownership and the need to ensure that as much importance is placed on improving conditions for renters.
“With the universally accepted challenge of the need for 300,000 new homes per year in the UK, the Build to Rent sector will be key to supporting this and therefore the perception of this product must change from a home of last resort to a home of choice.”Richard Jones, Partner, ARCADIS
Members of the event discussed how the role would work and how it could help shift more focus towards renting as opposed to homeownership. The discussion emphasised the need for more guidance and innovation in the rental market.
Build to Rent properties – which replicate the security and amenities of home ownership with the flexibility of renting – are seen as a potential game-changer for the industry. But a lack of awareness among the public and local government is a challenge that needs to be overcome.
“I think there is a real opportunity for some leadership in the sector to sell the benefits build to rent shares with home ownership in security of tenure and customisation.
“There is also a need for real innovation in the sector, if someone could create a consumer facing fund to directly invest in Build to Rent then it could also offer asset ownership. Society needs this to address the twin challenges of an aging population and declining rates of home ownership.”Jamie Ratcliffe, Executive Director of Business Performance and Partnerships, Network Homes