Affordable housing could be about to become an asset class in its own right

 
Courtney Goldsmith
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Construction worker builds a house
Affordable housing has provided opportunities in construction and investment. (Source: Getty)

Affordable housing could become an asset class in its own right, new research has suggested.

A report published today by management consultancy CIL has suggested that, despite having historically been regarded as a challenging area for the construction industry, affordable housing now represents a significant area of opportunity for the sector and for investors.

The report said new routes to funding for registered providers, a national trend towards faster planning processes and the government's decision to open up greenfield and brownfield sites for development had all made affordable housing more attractive to investors - compounded by a post-Brexit government eager to gain support among those looking for affordable housing.

Sebastian Chambers, partner and head of the construction and building products practice at CIL said the sector has both the political and structural support to create the conditions for growth.

As it comes more in line with the private market, new models have provided the environment for huge private investment and lower reliance on state funded grants.

Investor interest has also grown after the successful IPO of Countryside Properties earlier this year and Palatine Private Equity’s investment in Westleigh.

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