Paul Staley, private rental sector director at SDL Group, tells us what’s on his Christmas wish list, and what’s next for his sector in 2017.
From a business perspective, financial & legislative stability is undoubtedly top of the list. I know it sounds somewhat clichéd, but with Brexit and impending changes to letting legislation around the corner, the sooner these are resolved and finalised the better.
As the continued growth and success of the Build to Rent sector requires sustained institutional investment, we have to do everything we can to help remove the nervousness around those investors looking into a new sector.
On a personal note, I’d really like my home to be finished and put back together on time and within budget. I’m currently half way through a complete rebuilding and refurbishment of the old family home, which has kept me really busy over the past few months.
It can be reasonably argued that completing this on time is a much less likely outcome than financial and legislative stability, but Christmas is the time for asking for your biggest wishes!
In 2016, we saw a slight slowdown in the approval of funding for Build to Rent schemes immediately after the Brexit decision but thankfully this was short lived. After the initial shock, the big institutional lenders now appear to have an even greater appetite for the sector.
I am actually anticipating an increased interest in Build to Rent due to the recent decline of the Bond markets as this offers institutions a relative safe and secure home for investors’ capital, whilst providing a regular and constant return – ideal for pension funds looking for annuity income.
During the next year, I can only see the sector growing and I am predicting that within the next five years the Private Rental Sector will be contributing over 60,000 units per year across the UK. Our business will look to continue to expand our client base and exposure in the sector and increase our run rate of over 2,000 Build to Rent properties per annum.