01 Apr MPs Show Support For The Build-to-rent Sector
MPs in the UK have shown real support for the build-to-rent sector and its ability to help boost housing availability
MPs in the UK across a number of different parties back the build-to-rent sector and its potential to solve one of the biggest issues prevalent in the British property market as a whole.
In recent times, there have been worries about the potential of the rental sector to keep up with an ever-increasing level of demand from tenants, with more than half of letting agents in the UK worried that they would see a rise in rents as more tenants came to market than new properties.
However, MPs are confident in the ability of build-to-rent and large scale purpose built rental properties to tackle this issue, with 81 per cent saying they give their backing to the sector. As many as 62 per cent also say they believe that build-to-rent has the capabilities to improve the issue of housing shortages over the next five years.
The survey from the British Property Federation (BPF) found that the Conservative party is most likely to back the sector, with 91 per cent of its MPs saying they feel positive about its ability to make a difference. However, build-to-rent does enjoy a high level of cross-party support, with the survey finding that 71 per cent of Labour MPs also back it.
According the BPF director of real estate policy I. Fletcher the widespread recognition is a great sign.
This news comes at a time, however, when the sector has been hit hard by the news that large scale investments will not be exempt from the new Stamp Duty land tax levy that comes into play in April.
However, with cross-party support evident, and the vast majority of members of parliament backing the sector for the future, there is perhaps some light at the end of the tunnel, and a hope that there will be more positives to come from the government in years to come.
Jerald Solis of specialist property company Experience Invest believes that new-build property will continue to offer investors with a hands-off way to generate an income from property.
He explains that the new buildings come with a warranty – 7 to 10 years for different defects and damages. It could save investors a lot of money. According him most of the new build developments offer a great discount off the price
They can also offer a letting option or a full turnkey management. It’s really convenient for investors looking for a split payment plan over construction.