New report throws lettings a lifeline

News Category: Industry News

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Property developers are set to hand the under pressure residential lettings sector a lifeline with a new report from the British Property Federation (BFP).

The report calls for the government to re-evaluate the definition of affordable housing in order to accommodate better investment in rental building.

It also calls for special planning treatment for rental-only housing developments.

Ian Fletcher, residential director at the BFP, said that the current situation in which housebuilders are leaving the market is "ridiculous".

He said: "We're in a ridiculous position where we have increasing demand yet house builders are stepping out of the market.

"If we had a corporate rental sector here as they do in Europe, it would not only mean continued investment and thousands of extra new homes, it would also ensure that the major house builders had someone to sell their stock to."

Meanwhile, analysts are warning that shares in the UK's housebuilding firms look set to mirror that of 1990s trends, which is likely to impact on future residential property investment.


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