Recent studies implemented by the CBI indicate that by 2018, 1 in 5 households will live in private rented accommodation, and if demand for private renting continues, £57 billion of investment a year will be needed by 2016.
So, whilst it is ethically important to support first time buyers within the property economy, those who rent must not be forgotten. This is because the rental sector is showing signs of huge opportunity for growth. According to Katja Hall, a CBI chief policy director, in order to promote those who still choose to rent, “existing schemes such as the Build to Rent Fund should be turbo charged”. If this is successfully boosted, the Government would be able to present and showcase how investments within the rental sector can in turn generate impressive returns.
If business and the Government are able to work together on projects such as this, alongside developments in partnerships on public land (build now, pay later schemes etc.), then regulation may be sought that balances a degree of protection for tenants that does not infringe the line of overburdening landlords. A promising concept that would appeal to any potential investors.