Property expert Jean-Marc Vandevivere said research by data firm Molior London showing house-builders off-loading stock in the capital to build-to-rent (BTR) investors and housing associations “should not come as a surprise” given the weakening demand from would-be buyers.
Vandevivere, former head of residential at British Land PLC and now chief executive at BTR developer-operator PLATFORM_, also called for a rethink was needed around how mortgage debt impacted the wider economy and suggested the rental market will head the same way as student accommodation.
Jean-Marc Vandevivere, CEO at PLATFORM_, said:
“The statistics released by Molior showing that more London house-builders are looking to the rental market to secure an exit by selling to build-to-rent investors or housing associations should not come as a surprise: this allows house-builders to de-risk their larger schemes, especially in the context of weakening demand from owner-occupiers due to affordability issues, even though they benefit from very low interest rates and subsidies such as Help to Buy.
“As a society, we need to think about the wisdom of burdening people with high levels of debt, especially when mortgages tie people to a particular location for a prolonged period of time, hindering labour market mobility and in turn productivity. There is a growing recognition one of the key advantages of renting is flexibility – a major benefit in today’s footloose, globalised economy.
“Certainly the poor quality of the existing private rented housing stock – as outlined recently by the English Housing Survey – is why many still aspire to buy but with a new breed of corporate landlords looking to offer a bespoke product, perceptions will change, much like they have in student accommodation, which is no longer just associated with overcrowded HMOs or ageing university halls.”