For the UK, creating a link between the growth of the private rented sector and the delivery of new homes offers the opportunity to both increase the volume of homes built in the UK, and improve the experience of renters. 2016 will be a formative year in the growth of the institutionally backed build to rent sector.
London’s new housing zones represent a brand new way of delivering homes within the area. Each zone represents a partnership between local councils, private developers and the greater London authority to help build a projected figure of 66,000 new homes over the next decade. At current rates this equates to around three years’ worth of supply.
It also seems likely that a large number of these new homes will end up in the private rented sector. In 2014 the Mayor’s Housing Strategy set a specific target for the number of homes to be built and sold to portfolio landlords. This was the first time this was done and it was envisaged as a mechanism to quickly generate forward funding for new developments. Housing Zones look to be the first real test of this strategy.
Building the right homes in the right places is the best way of making the Capital more affordable to the average Londoner. Housing Zones are well placed to deliver large numbers of homes, offering a sought after mix of shovel ready sites that are viable to housebuilders.
20 years of growth alongside sweeping demographic changes have left the Capital’s traditionally more conservative Outer Boroughs at the forefront of the push to build more homes over the next five to ten years. Housing zones aim to take advantage of these changes, bringing together land, developers and perhaps most importantly, political will.
The above extract is taken from Countrywide’s latest research article How we live: the return to rent, to read further click here. Alternatively if you would like to discuss your current property portfolio or potential development opportunities we would be delighted to hear from you. For further information on our Residential Development division and how to contact us click here.