Wednesday, 17 September 2014

Private rented sector review head seeks evidence

The head of a government review of barriers to large-scale investment in the private rented sector has issued a call for evidence.

Sir Adrian Montague is seeking views on what can be done to encourage institutional investors, such as pension funds, to take an interest in the sector.

In the call for evidence he notes the private rented sector has grown rapidly in recent years, but that very little housing is built purely for private rent because the sector is dominated by small landlords. He says there is an ‘opportunity for larger-scale investment targeted on new build housing for private rent’.

The government announced the review of investment in the private rented sector in its Laying the foundations housing strategy in November 2011, and appointed its head before Christmas.

Sir Adrian said he wants the study to build on previous work undertaken by the government.

‘I want to focus on two fundamental questions,’ he said. ‘Will the changes that the government has introduced go far enough to generate significant new flows of investment? And, if not, what can be done to accelerate things?’

The review will be supported by an expert reference group consisting of Vidhya Alakeson (Resolution Foundation), Graham Burnett (Universities Superannuation Scheme), Tim Brown (De Montfort University), Ian Fletcher (British Property Federation), Nick Jopling (Grainger), Victoria Mitchell (Savills), Martin Moore (Prudential Property Investment), Nick Salisbury (consultant), and Peter Vernon (Grosvenor).

Evidence should be submitted by 31 March with the recommendations due to be made to ministers in June.

Readers' comments (14)

  • F451

    Perhaps institutional investors would be more attracted if the sector got rid of the unethical and badly behaved private landlords. What self respecting business would want to be counted alongside the rip-off merchants, the benefit thieves, the dodgy-dealers, and the life riskers.

    If the private sector could take charge of itself and cleanse it's shady underbelly, leaving the ethical and reputable bulk, the there would be less stigma for bankers and leading commercial interests to get involved!

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  • F451: Do you think a hedge funds, which can be based in the world, could match the service of a local landlord and letting agency. Staffing if a big cost. You prefer an impersonal Hedge funds manager, who has never have to meet the tenants or have face to face discussions. You prefer a world of the call centre. Press 1 for repairs etc....

    I have a no rent increase policy, do you think a faceless investment company will have the same policy?

    The lastest thinking about trade unions, is they wish to invest in rental property.

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  • F451

    @Concerned Landlord

    'You prefer an impersonal Hedge funds manager' - do I? how do you conclude this false belief?
    'You prefer a world of the call centre' - do I? how do you conclude this false belief?

    No I do not think the company would have a no rent increase policy. However, if they operate as similar companies do all across the developed world, then they are likely to have a nor rent increase during the lifetime of the tenancy policy - but this is more likely where state subsidy arrangements encourage such.

    Trades Unions - I'd like to see them provide and manage housing in cooperation with their members, not just invest.


    Do you think that your position would be made easier Concerned Landlord if the incompetent, the inept, and the immoral private landlords could be reduced or removed in presence, leaving a ethical and reputable sector?

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  • C'mon Sense

    Trade Unions to manage housing? Now I know you have lost your mind!!!

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  • F451

    Who says I had one in the first place!

    There was a time when Trades Unions provided pensions, sickness benefit, unemployment benefit, and housing too. Sadly, it gave such things up when the State promised to provide it instead. Now the State promise is broken (and will we ever get a refund, not a PPI chance in hell) why shouldn't the Unions cease being Ivory Tower Organisation with no agenda and become again the heart of support of the working class, offering secure finances and housing where the bankers and landlords no longer can.

    Not so mad, so perhaps I do have a mind, just not one brainwashed by a media and government that has not the people's interests at its heart.

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  • C'mon Sense

    Sorry, still laughing at the thought of union run housing..........I'll get back to you when the joke runs out. Could be a while!!.

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  • F451

    Good - put the presumptions and stereotypes aside, forget the Tory propaganda, and take a look at the history of the Labour and Trades Union movement and see just what value they could offer once more.

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  • C'mon Sense

    Please, stop it................can't breath...............

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  • Joe Halewood

    I want to focus on two fundamental questions.

    "‘Will the changes that the government has introduced go far enough to generate significant new flows of investment? And, if not, what can be done to accelerate things?’"

    On the first the CLG Housing Strategy has been totally undermined by DWP LHA rent freeze and subsequent yearly LHA increase of 2% below market rent. So the answer is No. In detail see http://wp.me/s1vuvL-587 which shows that private tenants cant afford private rents and also that private landlords can no longer afford tenants on benefit.

    Secondly, what can be done to accelerate new investment flows? Absurd question and a non sequitur. If investment flows will be severley restricted because of DWP policy on LHA, then only way to accelerate is to override DWP policy. That wont happen, and Universal Credit introduced in 2013 will make it even worse.

    You need a new set of questions and new terms of reference.

    Understandable that your two questions may have been framed after the Housingtrategy in Nov 2011. Absolutely absurd that they remain the same after DWP announced LHA policy in December 2011. Go back to the drawing board

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  • F451

    Dear IH - I am guilty of rough and tumble, and giving as good as I get, but I will be filled with sorrow if I've actually killed someone via posts.

    Do send an Ambulance for C'mon Sense (I do not have an address) - but if they find him Ok perhaps they could drop him at the Library so he may be better informed about our nation's history.

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