Mind the Viability Gap: Achieving more large-scale, build-to-rent housing
A briefing paper, published in September 2015, explaining how the build-to-rent sector could provide an accelerated path to meeting the UK’s housing demands. A comparative analysis of the build-to-rent and build-to-sell sectors identifies the barriers to market, such as the build-to-rent sector’s lower annual rate of return that falls short of investors' requirements. Solutions are suggested, including consideration of affordable housing allocations, planning conditions, covenants and vendor land receipt levels. Appendices provide an illustrative development appraisal, together with a policy overview.
Mind the Viability Gap: Achieving More Large-Scale, Build-to-Rent Housing
WORKING GROUP
Robin Goodchild - LaSalle Investment Management
Stafford Lancaster - Delancey Real Estate Asset Management
Dominic Martin - Westrock
Jean-Marc Vandevivere - The British Land Company
Sue Forster - Investment Property Forum
(Organisations correct at time of paper publication)
Large-scale PRS: Overcoming the current industry hurdles
The IPF briefing paper, Mind the viability gap: Achieving more large-scale, build-to-rent housing, published in 2015, focused on addressing the viability hurdle in order to provide an accelerated path to achieving large-scale, build-to-rent housing.
The purpose of this discussion paper is to focus on the hurdles relating to liquidity/transparency, pricing and management expertise that impede residential holdings from being integrated into mainstream (i.e. largely commercial property) investors’ property portfolios. These hurdles, and what is being done (and proposals as to what should be done) to overcome them, are reviewed under the following section headers:
• Hurdle 1: Valuation methodologies applied to large-scale, private-rented residential (PRS);
• Hurdle 2: Requirement for a widely adopted Index; and
• Hurdle 3: Developing professional management capabilities.
The IPF organised a panel discussion in London on 12 October 2016 to discuss current initiatives to overcome these hurdles. The event and subsequent work informed the final version of this paper, which we hope will generate further discussion within the industry, resulting in these and other hurdles being removed.
Large-scale PRS: Overcoming the current industry hurdles April 2017
WORKING GROUP
Richard Donnell, Hometrack
Charles Fairhurst, Fairhurst Associates
Sue Forster, Investment Property Forum
Dominic Martin, Atlas Residential
Jean-Marc Vandevivere, PLATFORM_
We would also like to thank:
Zeinab Azadi, MSCI and Becky Thompson, RICS for their contributions to this publication.
(Organisations correct at time of paper publication)