The building industry in general has a lot to be positive about. The lack of available housing is leading to a surge in new developments and unsurprisingly many players in this field have reported significant boosts in business over the last year.
However, the build to rent ‘boom’ isn’t good news for everybody – at least, not on the face of it. I know from speaking to many landlords that a number are concerned that the rise in purpose-built rental accommodation with institutional landlords will impact their business. Will renters look to rental houses and flats with traditional landlords when purpose-built PRS accommodation exists, often with plenty of added benefits from onsite gyms to concierges?
I don’t believe there is any reason to be unduly concerned. Development finance is indeed on the rise but there are a number of factors that are positive for traditional landlords. Firstly, the rise in build to rent just shows the government and indeed the country recognise the importance of the rental market. No longer is buying the only acceptable form of tenure. It’s now recognised that renting can be a good option for many.
Secondly, I believe these developments will encourage those landlords who perhaps don’t deliver the type of properties they should to up their game and improve the quality of accommodation they offer. If there is greater competition then there is more incentive to raise your standards.
In short, investment in the rental sector, in whatever form, will ultimately benefit everyone and, most importantly, tenants.
