Review to examine bars to institutional investment
The government will launch an independent review into investment in the private rented sector as it seeks to spark institutional investment.
In today’s housing strategy the government says it will ‘examine the drivers for and barriers to investment and place these in the context of existing landlords’ business models and tenant aspirations’.
The document highlights a range of measures to encourage institutional investors, several of which were trailed in the 2011 budget.
These include the relaxation of stamp duty on bulk purchases and measures to support the development of real estate investment trusts.
Developments that include new private rented homes will also receive government support through pilot projects led by the Homes and Communities Agency and in partnership with local authorities.
The first such site will be at Spencers Park in Hemel Hempstead, where land for rental homes will be put in as an equity investment. More pilot projects will be announced next year.