The report ‘How local authorities can foster investment by corporate landlords in new private rental housing’ was prepared by university professors Tony Crook and Peter A Kemp and has highlighted that local authorities can create a modern, private rental offering by working closely with investors and developers.
According to the report, residential property companies can bring their development expertise and development finance to working with local authorities, which can use planning powers, land banks and long-term pension funding to cut housing shortages.
Sigma’s PRS REIT is one such dedicated vehicle – focusing on private rental houses – which creates these channels.
- £21m PRS development at Liverpool Waters gets go-ahead
- UK's largest build to rent development to receive £65m from government
- Tackling damp and mould could boost PRS market, says property expert
Graham Barnet, CEO at Sigma Capital Group PLC and Sigma PRS Management Limited, said: “The response that we’ve already had to the REIT – in terms of investment and development – shows that there is demand for a unique model like Sigma’s, where developers, land owners and local authorities can work together with aligned interests, such as investor yield, developer growth, housing targets and tenant satisfaction.
“The shortage of new rental homes across England has been a problem for almost two decades, but it’s something that the REIT has already begun to address.
“Aligned with the housing white paper, local authorities and the REIT can lay the foundations of the rental market of the future, where both tenants and areas are cared for, for the long term.”