All facets of the Real Estate market conjure up arguments for and against. Today we focus on the good of the purpose built Private Rented Sector, PRS, with over 30,000 for rent units launching across the city in coming years.
The government is not providing homes to meet current and growing demand, nor are they providing a platform for developers to deliver enough affordable housing for the sales markets. Now London is seeing a resurrection of large-scale investment into the PRS market. A massive boost to help meet soaring demands that greatly outstrip supply. (Read: Generation Rent)
Projects from Canary Wharf to Heathrow are offering an opportunity for many thousands of Londoners to make a step up out of shared housing where they have been renting a room in an HMO (House of Multiple Occupation) or to move out of their parents home, providing a sense of freedom and a place to call their own.
Investors large and small are working hard to build or redevelop buildings or projects into sufficient quality rental housing that is price appropriate.
Another benefit of the professional PRS providers in the market is just that, they are professional, they operate like smooth machines providing the services and facilities needed to make the lives of occupants far more pleasant. I don't know any Londoner who has rented who has not come across a "landlord from hell"
1. They help alleviate the massive undersupply of housing
2. They offer professional service
3. They provide housing at appropriate pricing across many sectors
4. They provide an alternative to HMO's for those who can not afford to buy or who do not wish to buy. This also includes those who do not qualify for social housing.
Investing in the PRS market offers great potential for long term income from your portfolio combines with helping to alleviate the devastatingly tight housing supply in London.
Whether you are a top tier specialist company investing into the market on a large scale, backing projects in the PRS market, or building your PRS portfolio one unit at a time. I would love to hear your views on the market and find out what your issues and concerns are for the coming years.