Analysts reckon that, by the end of the decade, one in five newly built homes could be institutionally owned and rented out
Britain’s private rented sector is big and growing. Almost one in five English households rented privately in 2020, up from around one in ten in 2001. It is also strikingly amateur, dominated by individual landlords who own at most a handful of properties. The largest private landlord, Grainger, a listed firm, owns around 9,000 units, giving a market share below 0.2%.
But during the past decade the rental sector has started to professionalise. And the build-to-rent stock, though still a small share of the total, rose from around 1,000 in 2011 to over 62,000 in mid-2021, with 133,000 more under construction or in the planning process . . One reason for the boom, says Andrew Burrell of Capital Economics, a consultancy, is that retail and office properties are comparatively unappealing. Many investors wish to keep some capital in British real estate, but fear that shopping centres and high streets are in long-term decline, and that office rentals will be hit by the post-pandemic rise in working from home. Residential demand shifts mainly with demography and is less buffeted by the business cycle.
A decade ago most British build-to-rent projects were at the premium end of the market. They came with bells and whistles such as gyms, concierge services and even dog-washing stations. But that has begun to change. The fastest growth is now to be found in single-family homes, rather than flats, typically on the outskirts of big cities such as Birmingham, London and Manchester. Families with children are often unwilling to move, since changing schools would disrupt their children’s education.
Institutional interest in their wares is a boon for big housebuilders. Lloyds will be working with Britain’s largest, Barratt Developments. And it is well-timed, since another source of demand may soon weaken. Since 2013 the government has subsidised mortgages through “Help to Buy”, which provides equity loans that allow borrowers to buy with smaller deposits. But the scheme’s rules were tightened in April, and it is due to be phased out by 2023.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Gap Inc. Sees Big Q2 Gains; Ups OutlookGap Inc. saw net income rise to $258 million in the second quarter, from a loss of $62 million in the year-ago period.
Read more »
These stocks were big winners during the last Fed taper and analysts love them nowFor CNBCPro subscribers: These stocks were big winners during the last Fed taper and analysts love them now.
Read more »
Opinion | The era of big government is nowDemocrats are finally aggressively touting major projects and investments after years of running scared from Republican attacks on their “tax and spend” policies and alleged “socialism,' HayesBrown writes for MSNBCDaily.
Read more »
Steph McGovern receives romantic gift from partner ahead of big challengeSteph McGovern is about to work for 18 days straight, and so ahead of the first day she received an incredibly romantic and thoughtful gift from her partner
Read more »
What's The Big Frigin' Difference?Can you spot the THREE differences in these Bella Hadid photos?
Read more »
Big Red Machine's Ever-Expanding Guest List.aaron_dessner, anaismitchell, and FleetFoxes’s Robin Pecknold told us how they came together for BRMadjv’s collaborative new album HowLongDoYouThinkItsGonnaLast
Read more »