UK housing review will favour private rented sector over affordable homes | 2 July 2012
The UK’s private rental sector is widely anticipated to be the biggest winner when an influential government-commissioned housing review is published next month.
Sir Adrian Montague’s review, which seeks to encourage institutional investment into the rental sector, is said to contain five key recommendations that could dramatically change the UK’s housing landscape, according to sources close to the matter.
Propertyweek.com reports that one of the most significant of which is giving local authorities the power to waive affordable housing requirements for large-scale private rented developments.
Loans, or equity funds, meanwhile will also be made available in the first phases of large-scale private rented developments, while a specialist housing task force will be set up to identify more areas of public land to use for private rented sector schemes.
There will also be a new “kite mark” to ensure high standards are maintained in the built-to-let sector; perhaps offering landlords and housing institutions more incentives to invest in adequate property management software.
While many commentators agree that the proposed changes swing firmly in favour of the private rental sector, Rod Cahill, chief executive of 21,000-home Catalyst Housing, was critical of the news when speaking to insidehousing.co.uk.
“I don’t think that you can possibly say that private renting is a substitute for affordable housing [in housing strategies],” he said.
“Private renting is a market solution. The growth problem isn’t in private rented housing – the [growth] problem is owner-occupation and the affordable housing sub-market sector,” he added.
Written by Chris Taylor on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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