Developers in Oxford who have been dormant for some time in the building of residential stock, might be interested in a recent report from Grainger (a big file so be patient while connecting to the link I think it makes some very interesting reading) Graingerplc_Rental_Review_2012 who are advocating tax and planning concessions for Build to Rent schemes.
It would appear that the Government are looking into viability of such a scheme in the light of some research commissioned by the largest Landlord in the Private Rental Sector which is indicating a significant shift in public attitudes to long term renting.
There has been a long running dialogue on how best to introduce further institutional investment in to the Private Rental Sector, to bring greater security and diversity to the funding and to reduce the volatility in the market place. This might be an attractive mechanism.
Schroders, a large international asset management company who have experience in mainland Europe, have recently reported an expansion of their property assets by £600m. They are well placed to act as a bridge between developers and investors were such a scheme to come to fruition.
William Hill, Head of Schroder Property, who incidentally sat on the group responsible for Grainger's recent report, comments: "Schroders manages a number of investment trusts and adding a property investment trust to the range has been a business objective for some time. We believe the property investment trust sector has the potential to grow substantially in a savings market that is demanding both yield and liquidity.”
Let us hope that Mr Hill is not as prejudiced against the Residential sector as so many of his counterparts in other asset management companies.
It may be that these two significant players have hatched a plan that might have merit because the timing is so appropriate.