With the growth of the UK private rental sector, particularly in London and the South East, it is no surprise that foreign companies who hold large percentages of rental stock abroad want to enter the UK market. Currently in the UK institutions only hold 2% of private rental stock, while in Europe this number is between 10% and 15%.
Despite the global financial crisis, London’s image as a safe haven for investment endures, and combined with rising house prices which are pushing people into the rental sector, the UK makes an attractive prospect to foreign investors.
Anne Ashworth comments that this new league of landlord can benefit tenants by providing management services. Managed blocks can provide security, good broadband connections and the more expensive blocks could offer gym and concierge services.
Investors it seems are also listening to the demands of renters and designing apartments that people want to live in. Willmott Dixon Regen interviewed 6000 renters about what they would want from an apartment. The results showed that storage, sound insulation and bedrooms of equal size were all important.
The benefit of large institutions investing means that through careful planning tenant demands can be met in the building or conversion of new apartments, supplying homes that meet high standards and provide value for money for the tenants.
Original article by Anne Ashworth in The Times 2.08.13