An influential committee of cross-party MPs has thrown its weight behind two of the BPF’s key recommendations to tackle the UK’s housing crisis.
The CLG committee, headed by Clive Betts MP, today published its Financing of New Housing Supply report which argues institutions and pension funds “could make a significant contribution to the building of new homes in both the private and social rented sectors” while real estate investment trust (REITS) “should be revamped to encourage investment in housing.”
The BPF has been routinely calling on Government to remove barriers so institutions, such as pension funds, can invest in housing and liberalise the REIT regime so its advantages are used by residential investors.
Ian Fletcher, director of policy at the British Property Federation, said: “We welcome the findings of the report and particularly the support for several of our proposals. With current finance models struggling, we must look at the broadest range of options for funding the UK’s housing supply and institutions and REITs, as well as smaller investors, can all play a part.
“Institutions have for some time expressed an interest in investing in residential property. While many of the conditions are already in place, such as rental demand and political support, the lack of scale to deliver an acceptable return remains a barrier. We underplay the important contribution individual investors make to housing investment, and I would rather see them investing in housing than classic cars or fine wine, but if we want to see institutions deliver on a large scale we’ll need to see specific ‘build to let’ schemes.
“The Select Committee correctly highlights that whilst there is no silver bullet, we need to encourage and support a broad range of different investors in housing supply if we are to meet the nation’s housing needs. Writing that up in a way that is thorough and objective, without sensationalising what is a very serious issue, is to the Committee’s tremendous credit.”
