The position of the purpose built rental accommodation sector in the UK’s property market could be strengthened markedly over the course of the coming years, after the government was urged in a new report to look at new ways of building homes to meet demand.
The Confederation of British Industry (CBI) has published its new study looking at the government’s UK house building targets for 2020, and said that the way it has been looking to meet goals for some time are no longer fit for purpose.
It said that the one size fits all approach Westminster has often been seen to have with regards the building sector is not appropriate in this day and age, and urged the Department for Communities and Local Government to look at new ways of building and innovative construction methods in order to make sure it hits its goals moving forward.
“A quiet revolution in the way business and the government think about, provide and deliver housing is necessary if we are to reach the welcome target of one million new homes by 2020. The one size fits all approach has passed its sell-by date,” said CBI deputy director general Josh Hardie.
Among the demands for a change from the CBI was the need to make sure that small and medium developers are not ignored when it comes to land and funding for home buildings, while it also highlighted the real value that the private rented sector has in making sure these building goals are reached, and urged the government not to ignore its impact and importance in the modern property market.
Crucially, the CBI also said that the focus in the modern world of building has to be placed on making sure homes meet the demands and needs of the people who are going to buy or rent them. And it’s here that the purpose built rental sector could really step in and help.
“As the demographic landscape changes, we must have homes in the right places that fit the needs of people who live in them, creating vibrant and attractive communities. Equally, we must see different types of players in the market, like small house builders, more innovation and new partnerships between business to boost our supply base,” said Mr Hardie.
Purpose built rental accommodation is increasingly moving away from an approach wherein it sees every home as the same. In the modern world of renting, it is more important than ever that those who are tenants because they want to be tenants, and not because they need to be, are catered for.
Homes are increasingly being built that are near to business hotspots and transport links, have amenities such as high speed internet and gyms within them for young professionals, and create the community feel around property that perhaps has never existed before in the private rented sector, and it is this that could have a positive long-term effect on the housing sector in this country, with the private rental market and developers best placed to help the government reach its ambitious goals.
This article has been provided by Experience Invest.