Housing White Paper reaction
From Jo Eccles, Managing Director of independent property search agency, Sourcing Property
“The government’s expected announcement to bolster the Private Rented Sector (PRS) and Build to Rent is a positive step. Attracting institutional investors to the professional landlord industry is vital. Not only will they be able to help build appropriate housing stock (and quickly) but they will be in a position to permit very long term and professionally managed tenancies, which would-be buyers are craving.
“The aspiration to be a home owner is well and truly changing, whether by choice or financial circumstance. For example, a large majority of millennials don’t actually aspire to owning a home; they don’t want to have to save their disposable income for a deposit on a property, or to lock themselves in to remaining in one place for a long time, or burden themselves with the responsibility of having to maintain a property.
“Downsizers aren’t dissimilar. Many I know would gladly downsize to a more manageable and suitably located property if they had the option to rent indefinitely and save themselves the huge expense of having to buy the smaller property and sink vast sums of their released equity into stamp duty in the process.
“Individual landlords don’t hold the answer to the emerging nation of willing renters. They are often constrained to offering relatively short term tenancies of no more than a year or two at a time due to buy to let mortgage restrictions on the length of tenancies they can commit to, or their own personal circumstances that may see them move back to the property or use the value of their property for other things. In addition, the upcoming mortgage interest tax changes may well result in a reduction in individual landlords over the coming years. Not only does institutional investment in the PRS mean appropriate housing available on a long-term basis, but the yield from their property holdings should provide capital preservation that so many institutions, such as pension funds, need. A win-win for everyone in my opinion.”
For further information call 020 7244 4485 or go to www.sourcingproperty.co.uk