Encouraging Signs For Residential Investors
Following a review of the Government’s Housing Strategy launched in November 2011 a report makes recommendations to accelerate the provision of private rented homes to meet existing and future homes. These recommendations include:
- Councils using flexibilities in the planning system to encourage development of private rented homes. This could include waiving affordable housing requirements on new developments of private rental homes or reassessing stalled developments to establish whether the new homes could be made available for rent rather than sale.
- A task force should be set up to encourage and support private sector investments in build-to-let schemes and to develop the voluntary code for standards for landlords.
- The Government should provide incentives to encourage the creation of build-to-let business models. This could include the Government sharing the development risk in the short term.
- The Government should allocate to build-to-let development some of the redundant, formerly used public sector land that is being released.
- The Government should work with Councils to identify sites where there is demand for private rental housing. The site should be made available to developers on the condition that a proportion of the homes built are privately rented.
A formal response to the review will be issued by the Government later this year.