Private investors pour money into build-to-let property after Conservative win
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Version 0 of 1. A £30bn flood of private investment could be poured into building flats for rent after it emerged that David Cameron would be staying on at number 10. A pre-election lull of investment into the private rented homes sector was partly owing to concerns that if Labour was running Britain, there would be rent controls and longer tenancies. This could make property projects less financially viable. Jacqui Daly, director at Savills residential investment said: “Investors have been sitting on their hands and we’ve postponed bringing investments to the market.” Money would be welcomed to ease a shortfall in rented homes as more people look to lease homes. The number of privately rented households has more than doubled since 1980, to about 4.5 million in 2014 Daly added: “The pent up demand and the weight of capital targeting the sector is likely to lead to more deals closing in the second half of the year.” A recent survey of investment houses identified a collective ambition to invest over £30bn in the UK private rented sector (see graph). Developers in the private rented sector were quick to welcome the Conservative win. Steve Sanham, development director at HUB said: “There’s obviously going to be a confidence boost.” At the same time Martin Bellinger, chief operating officer at Essential Living, commented: “If the next government can strike a balance between promoting ownership and supporting build to rent, thousands will benefit from better quality housing.. and best of all, apartments designed specifically to accommodate families.” |