Tuesday, 20 October 2015

They own land! Give them money!

From City AM:

Calls for more properties to be built in London to slow rampant price growth are being partly answered. The capital is leading the way in the Build to Rent scheme, with the number of rental developments in the pipeline more than double that in the rest of the UK.

The scheme allows developers to build properties for rent with the government sharing risk in order to encourage new housing investments....

“The momentum behind Build to Rent continues. It is moving firmly beyond theory and into reality. With continued support from both national and local government this progress can continue,” said Andrew Stanford, residential fund manager at LaSalle Investment Management.

“The growing number of long-term institutional investors in the sector will then find a suitable home for their capital, ensuring that housing supply and tenant choice can increase.”


We now appear to be in some bizarre parallel universe.

7 comments:

Sean Vosper said...

Some good LVT stuff from John Kay:

http://www.johnkay.com/2015/10/14/lower-business-rates-would-benefit-property-owners-not-retailers

Mark Wadsworth said...

SV, JK has always been a moderate LVT er. But there was much rejoicing in the LVT community when that article appeared.

A K Haart said...

It certainly is a bizarre parallel universe. We live in a house which many would see as too big and they are probably right, but one day we intend to sell and make sure our grandchildren are not screwed by landlords. Round here they buy up almost everything - not just starter homes.

Meanwhile Derbyshire villages are steadily being gentrified for the comparatively wealthy. I've been walking the area for over fifty years and the change is obvious.

Lola said...

SV / MW That article by John Kay is a cracker.

Lola said...
This comment has been removed by the author.
Shiney said...

Like Mr K.... wrote one of the best business strategy books I've ever read "The Foundations of Corporate Success".

Bayard said...

Ironically, "London" as a market would probably respond to increased supply, if enough new homes were built. However demand is so high there probably never be the space to build enough to make any difference, plus no-one is going to build if they think that a fair proportion of the homes are going to remain empty. So long as every new home can be sold or let, increasing supply is going to make bugger all difference, everyone will still be at the "maximum they can afford" level.

OTOH, there is the example of Carmarthen I cited earlier, lots of vacant homes and rising prices.