The chancellor, Rishi Sunak, is being encouraged to help boost the supply of much-needed housing stock in the private rented sector by supporting investment in the PRS.
Winkworth CEO Dominic Agace is calling for the Chancellor to make it more attractive for landlords to invest in the PRS to increase the number of rental homes.
In Winkworth’s latest episode of The Property Exchange podcast on the rental markets in London and the country, launched today, Agace said many landlords have sold off investment properties in central London, following tax changes on mortgage relief available to landlords and the introduction of a three per cent surcharge on second property purchases – which has led to a reduction in available rental properties.
He commented: “30% of homes in London are in the private rented sector. Young professionals coming to work in London to build a career need to be based in the capital and it is critical that housing stock is here and affordable. It is important that they are able to come to ensure our continuing status as a global centre. There has to be a balance of fairness between tenant and landlord.”
He added: “Prices in central London have come down so it is a good time to invest and make the most of the capital growth and increasing rents as people return to the capital. However, landlords need some fresh encouragement from the Chancellor to invest in London.”
Speaking as the podcast was released, Dominic Agace warned that further tax penalties on landlords called for by Sir Keir Starmer at the weekend, in a speech to the Local Government Association confererence, could lead to a reduced number of rental properties and higher rents.
Agace continued: “This could push landlords to sell off more properties, reducing supply and leading to rent increases – which would be more costly to working people needing to rent than the 1.25% rise in National Insurance.
“A healthy private rental sector is essential and landlords can’t be pushed much further in areas such as London where yields are already very low and rents have declined significantly as a result of the pandemic.””
The Property Exchange podcast, presented by broadcaster and commentator Anne Ashworth, also looks at opportunities for investors.
To tune in to the latest episode of The Property Exchange, find it here:
Spotify: https://open.spotify.com/episode/05ypQiw80KCanDF2yjNaeX
Audioboom: https://audioboom.com/posts/7937829-is-the-rental-market-turning-london-vs-a-typical-rural-market-devizes
Although any movement out of the sector by private landlords has been mitigated somewhat by increased investment in BTR adding to the supply chain now coming through the system .
Knight Frank confirmed in 2021 that £2,3bn has been pumped in in H1 a 79.8% increase over the same period in 2020 .
Opportunity knocks ..Management of change required Ignore this sector at your peril.
Winkworths need to be front and centre of this to enjoy all the lucrative fees going begging .It isn’t going away.
Nick Pleydell-Bouverie, Head of Residential Capital Markets at Knight Frank, says: “Over the past 18 months, we’ve seen a significant uptick in both appetite from existing investors looking to deploy further capital into the BTR space, as well as a range of new domestic and international investors looking to enter the market.” These schemes tend to be in developments over 200 units+ for economies of scale and has pushed out through the regions.
70% of current investment is outside London. Follow the money
At the beginning of the year, Legal & General announced that it was funding a major new Build to Rent development in Leeds city centre ,committing almost £60 million to partner with Richardson and Ask Real Estate in delivering the 500-unit Tower Works development in the city’s South Bank regeneration area.
Savills.JLL and CBRE are farming this sector .where substantial fees are there to be earmed .Site acquiistion and funding +management and letting of the finished article
If Winkies haven’t got an individual looking to create deals here they are missing a trick
This sector isn’t going away and perhaps Winkworths should adapt,play the hand they are dealt with and get involved
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Absolutely, Manchester currently the hub of this with over 6,000 build-to-rent apartments across 20+ communities, a huge increase compared to 2016 when there were just 500 in the region.
Massive investment coming in the suburbs too, several major investors either building or buying developments emulating the US single family model where whole sites are rental houses only with communal facilities akin to modern flats. We are involved in several of these both in UK and US and its interesting to see the shift of rental providers.
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It not just tax but Abolition of S21 has sparked the sale of many buy to rent properties, particuilarly by the smaller investors and who have come to realised they being made the whipping boys of the new red & purple politicians (conservatives in name but with a strong leaning to towards labour ideas). This seems to be ignored by many, perhaps the manipulated by the woke society hidden below every stone out there. Politicians doing the best for themselves and not the country in many cases.
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Government are doing their best to reduce PRS for the public. They do not want us to buy property for pension or have a windfall on a flip.
They want institutional investors like banks buying up 50,000 properties.
To urge the chancellor to help the PRS is a complete waste of time.
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Never mind ‘ steps to Encourage ‘ the PRS, it would be a big help to tenants if so-called ‘ Free-Loading Tenant support groups ‘ and the Govt Stopped demonising, penalising and actively discouraging the PRS in general.
Politicians use tenants plight to garner votes by misrepresenting the PRS by relevance to a comparatively tiny minority that are not being dealt with by Local Authorities.
Instead, Govt have encouraged L.A’s to generate revenue they have been denied by Govt by chasing ‘ Easy-Target ‘ landlords with ‘ shotgun approach, ponzi Licensing schemes. Lack of an impartial investigative media is also evident in the easy narrative fed to them by Rent-Dodger support groups, and trotted out ad-nauseam.
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Again this will only apply to England.
Over the border in Wales they are hell bent on destroying PRS. They upped the tax liability for landlords considering investing in Wales with a added tax of Land Transaction Tax of 4% for purchases of all properties you don’t live in. They don’t want investors ….. sounds madness.
Come Spring 2022 Wales intends to implement The Renting Homes (Wales) Act. The Act introduces lots of changes to tenancy laws and, once implemented, the changes will apply to virtually all rented properties in Wales.
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