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Evidence sought on barriers to institutional investment in private rented homes

Launching the call for evidence, Sir Adrian said: "I want to focus on two fundamental questions. Will the changes that the Government has introduced go far enough to generate significant new flows of investment? And, if not, what can be done to accelerate things?"

The review builds on previous work undertaken by the Government including changing the stamp duty on bulk purchases, reforms to residential Real Estate Investment Trusts in the United Kingdom and the Homes and Communities Agency’s private rented sector initiative. So the emphasis is very much on new evidence and fresh thinking.

Sir Adrian is supported in the review by an expert reference group consisting of Vidhya Alakeson (Resolution Foundation), Graham Burnett (Universities Superannuation Scheme), Tim Brown (De Montfort University), Ian Fletcher (British Property Federation), Nick Jopling (Grainger plc), Victoria Mitchell (Savills), Martin Moore (Prudential Property Investment), Nick Salisbury (Consultant), and Peter Vernon (Grosvenor Ltd).

Submissions are sought by 31 March and Sir Adrian plans to report his findings and possible recommendations to Ministers in June 2012.

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One thought on “Evidence sought on barriers to institutional investment in private rented homes

  1. A prime example is the debate about the holiday let investment property.

    Factually many 1000’s of holiday lets are run as business’ ( and recent case law established this with regard to inheritance tax).

    Holiday lets are business rated.

    They should be an ideal investment for a private pension.

    The argument has always been that some will buy a holiday let to set against tax whilst benefitting from using the property as a personal holiday home. It is very easy to establish the genuine business use of a holiday let as a business.

    I agree that only U.K. property pehaps could be considered as suitable for inclusion in a pension.

    There may be other categories of the private rented sector which could be introduced as suitable for inclusion in a private pension.

    1000’s of landlords have voted with their feet and bought private sector rented property with their retirement in mind. Pensions are obviously big on the agenda, the Government should act to consolidate this opportunity for individuals to invest for their retirement.

    In truth the large pension funds and property trusts just introduce their added fees and costs to the equation. The private rented secor equation is already tried, tested and working, and does not need an added layer of administration and cost.

    Just look at the new housing stock built over the last 10 years in our city centres, look how the value of this stock in general has fallen inline with market forces, look how the private sector has grown and in recent years found a saturation point, that then reflects in the market rents being achieved.

    This is not a new brave world, just look at France, Germany etc, where the private rented sector exists naturally based on demand and landlords invest for the long term.

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