Calls for more properties to be built in London to slow rampant price growth are being partly answered. The capital is leading the way in the Build to Rent scheme, with the number of rental developments in the pipeline more than double that in the rest of the UK.
The scheme allows developers to build properties for rent with the government sharing risk in order to encourage new housing investments.
There are currently 14,276 units in planning, completed or under construction in London using the scheme compared with 7,112 in the rest of the country, according to figures released today by the British Property Federation (BPF).
“The momentum behind Build to Rent continues. It is moving firmly beyond theory and into reality. With continued support from both national and local government this progress can continue,” said Andrew Stanford, residential fund manager at LaSalle Investment Management.
“The growing number of long-term institutional investors in the sector will then find a suitable home for their capital, ensuring that housing supply and tenant choice can increase.”
The BPF also called on the government to follow the example set by the Greater London Authority and change national planning policy. It wants planners to stress that the appropriate affordable housing on new Build to Rent developments should be discounted market rent.