The British Property Federation (BPF) has pledged to improve the rental market through the UK Build to Rent sector, which has the potential to become the major player in the sector over the next few years. In a move which housing minister Gavin Barwell has called “great news”, the BPF said it will make more homes available, as well as longer periods of tenancy.
Drafted in line with the targets that were set out as part of the government’s latest white paper on housing, the pledge from the BPF and 20 major parties with an interest in the UK Build to Rent sector says it will “demonstrate the sector’s commitment to providing three-year tenancies and working with government to ensure the sector can play its part in rolling back 20 years of housing undersupply”.
Two of the major benefits that will come from the pledge will include longer tenancies. This is something that the rental market will welcome in general, as it offers better security in the long term.
Now that people are more open to living in rental homes for longer periods, as opposed to simply seeing them as a stop gap until they can afford to buy, longer tenancies are preferable, because they allow people to see their rented property as a home. It’s something that has been on the cards for some time in rented homes, but a pledge from an organisation such as the BPF should help to make this a reality by normalising longer tenancies. Landlords welcome longer tenancies as they help to reduce void periods.
Ian Fletcher, the BPF’s director of real estate policy, said: “The Build-to-Rent sector welcomes the government’s multi-tenure ambitions for the housing market, as outlined in the recent Housing White Paper, and this pledge underlines one of the many benefits of the sector to government and the sector’s customers.”
He added that even though three-year tenancies are already more common in the UK Build to Rent sector than in any other area of property, this latest pledge can help make it a trademark of the rented market as a whole.