Incentivise small landlords to use Build to Rent – debate

  • 13/06/2017
  • 0
Incentivise small landlords to use Build to Rent – debate
Government should do more to incentivise Build to Rent for smaller landlords, according to speakers at a buy-to-let debate hosted by Shawbrook Bank.

Participants said government is unnecessarily focusing on institutional landlords and underestimating the importance of private landlords.

They said the Build to Rent scheme could encourage small landlords to snap up unsaleable properties and develop them into desirable rental units. Under the government’s previous build-to-rent scheme, developers bid for funding to cover the development costs – refinancing or selling the scheme within one or two years of completion.


Harmonious relationship

Brokers said this is an area in which private and institutional landlords could complement each other well, as the types of property and location which they build or buy tend to be different.

Private landlords can be more focused on the regions of the country, while institutional investors may stick to the capital; the former may be keen to redevelop dilapidated properties while the latter may focus on building larger tranches of one type of unit such as student accommodation.

Property market analyst Kate Faulkner said bringing in incentives for smaller landlords would be sensible.

“There are two million landlords in the UK at the end of their tether; they look after their tenants, providing a legally and safely let property at a fair price. Yet many are getting a rough deal, with their service being treated as a ‘problem’ rather than a much needed solution,” she said.

“Build to Rent incentives for smaller landlords not just large, are a really obvious policy for the government to bring in.”

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