Despite initial doubts that the build to rent scheme would be viable
\noutside of London and the southeast, it is proving popular with big
\ninstitutional investors and confidence is growing rapidly. The main
\nreason for this is that two major reports, including one by EC Harris,
\nhave indicated that the scheme is likely to work very successfully in
\n53% of local authority areas.<\/p>\n
Government Plans for the Build to Rent Scheme<\/strong> Scheme Oversubscribed<\/strong> Knight Frank strongly believes that the UK rental<\/a> market is still Despite initial doubts that the build to rent scheme would be viable outside of London and the southeast, it is proving popular with big institutional investors and confidence is growing rapidly. The main reason for this is that two major … Continue reading
\nThe Build to Rent scheme was incepted in 2012 and \u00a31billion was poured
\ninto it. This was further topped up in the last budget, in the hope that
\nthe scheme will attract investors into the private rental<\/a> sector. The
\naim of the game is to encourage investors to finance new, purpose built
\nrental accommodation developments. The government thinks that this will
\nimprove the quality of homes in the private rental sector as well as
\nprovide some extra competition for private landlords (and thus help to
\nstabilise rents).<\/p>\n
\nA recent study by Knight Frank has indicated that the scheme is
\noversubscribed. There are now more than a billion pounds worth of rental
\nhousing development projects in the pipeline in London and other major
\ncities, including Manchester and Leeds. The average investment yield for
\nthese areas was 6.6%, but for the last quarter of 2013, average initial
\ngross yields rose to 8.2%.<\/p>\n
\ngrowing and that investors are queuing up to pour their money into the
\npot, which is good news for tenants, but not so great for private
\nlandlords, as they could soon be facing stiff competition for
\nprospective tenants.<\/p>\n","protected":false},"excerpt":{"rendered":"