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‘Market and regulatory failures’ hampering build to rent

  • 03/08/2017
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‘Market and regulatory failures’ hampering build to rent
Over three quarters of people believe market and regulatory failures are impeding the development of build to let, according to a government consultation.

The consultation ‘Planning and Affordable Housing for Build to Rent’ ran from February to May this year and sought feedback from over 200 respondents from a range of sectors, including private landlords, investors, developers, local authorities and private rented sector (PRS) and affordable housing residents.

A summary of responses published this week revealed an overwhelming majority of respondents, from all sectors, and across all regions, believe that national policy intervention is merited.

The consultation also found 60% of respondents were in favour of planning authorities specifying minimum tenancy lengths in build to rent schemes.

Developers and investors in build to rent were more divided in their views, with 33% in support, and 53% against the proposal. Social landlords were generally supportive at 66%.

A small majority, or 51%, of  people agree with the government that there is no need for a fixed minimum covenant period – dictating how long a build to rent property must remain in the PRS – so long as appropriate claw-back arrangements are provided for. Some 67% of developers and investors in build to rent supported the government.

The government announced its support for private build to rent developments in the Housing White Paper delivered by communities secretary Sajid Javid (pictured) earlier this year.



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