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What Effect Will "build To Rent" Have On The Rental Market In The Uk?

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There is an article in the Financial Times called "City investors step into UK rental market" which is basically about the growth of "build to rent" whereby big companies put money into building rental properties that are specifically built for renters and are properly managed with long term tenants etc. Lots of examples of companies investing in "build to rent", for example, L&G are building 300 rental properties in Walthamstow. Not sure what amount of rent they would be charging or what size the units are but at the moment on Zoopla there are less than 300 properties for rent in all sizes in Walthamstow.

This (Guardian) article is from January but still applies. http://www.theguardian.com/money/blog/2015/jan/17/prudential-built-buy-to-let-flats-london-renting. M&G (the investment arm of Prudential) is building 152 flats in North Acton and they think they can generate a 4% per year for investors.

If the big pension companies start to get into "build to rent" then it could be a massive gamechanger in terms of quality of rentals and much more in line with places like Berlin where many rental properties are specifically built by big companies consisting of many units and run as a proper business and properly managed, not by an individual as a hobby or renting out their own homes for a couple of years. Should be interesting to see where this goes.

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It's got to be good news. Hopefully the rental market won't be like launderettes or picture framers (pretty much all owner operated) and instead it'll follow the path of undertakers, where bigger businesses have managed to gain traction and take share. Ideally it would actually follow undertakers right into the grave, but that's probably being a bit too hopeful.

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We have a lot of purpose built all rental building in Toronto. Most of them are ultimately owned by pension funds and insurance companies although some are part of REITs with a general float. I would say that the effect is completely positive in that they provide long term stability for renters and generally help to sideline the cowboy BTL types with a few flats that seem to dominate the UK market. That's not to say that there aren't some dud rental buildings out there but, on the whole, the quality of what's on offer is good.

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We have a lot of purpose built all rental building in Toronto. Most of them are ultimately owned by pension funds and insurance companies although some are part of REITs with a general float. I would say that the effect is completely positive in that they provide long term stability for renters and generally help to sideline the cowboy BTL types with a few flats that seem to dominate the UK market. That's not to say that there aren't some dud rental buildings out there but, on the whole, the quality of what's on offer is good.

+1 we rented in Toronto and it was a really good experience. A dedicated manager running the building and onsite repair man to sort out issues almost immediately.

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Long overdue (though I'm sure I saw a discussion here about this a while ago), there are a lot of companies out there sitting on either land that could be used to build to rent or old 70s office blocks that could be converted into BTR flats. This will certainly shake things up for those LL who rent out 1 or 2 bedroom flats.

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Just seems to me as if its the corporations encroaching even further on peoples lives.

the British housing policy from WW2 until the early 80s was far superior to this German model people who know little about it keep going on about.

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Just seems to me as if its the corporations encroaching even further on peoples lives.

the British housing policy from WW2 until the early 80s was far superior to this German model people who know little about it keep going on about.

care to enlighten us poor ignorant types?

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care to enlighten us poor ignorant types?

I'm no expert myself, but from the few Germans i've worked with they're looking to spend upwards of £220K for a run of the mill family home in provincial towns/cities.

They wish to own as just as the case is in Britain people don't wish to be rent slaves forever ... even if there landlord is better than an amateur landlord.

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I'm no expert myself, but from the few Germans i've worked with they're looking to spend upwards of £220K for a run of the mill family home in provincial towns/cities.

They wish to own as just as the case is in Britain people don't wish to be rent slaves forever ... even if there landlord is better than an amateur landlord.

Better a debt slave than a rent slave? Or is it the other way round? Surely better not to be a slave at all but to have the choice between buying or renting on the best possible terms. Though the

were dealing with questions of prejudice rather than economic freedom the analysis is still potent. "Free your mind and the rest will follow."

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+1 we rented in Toronto and it was a really good experience. A dedicated manager running the building and onsite repair man to sort out issues almost immediately.

You ridiculous colonials with your incorrigible newfangled thinking. We just have some chappy put some beds in a shed. Problem solved. If the problems persist, then surely more beds in more sheds.

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Better a debt slave than a rent slave? Or is it the other way round? Surely better not to be a slave at all but to have the choice between buying or renting on the best possible terms. Though the

were dealing with questions of prejudice rather than economic freedom the analysis is still potent. "Free your mind and the rest will follow."

Just because the UK economy is arguably the most rigged on the planet and a catastrophe for anyone who works and was born after say 1970 doesn't mean Germany's property market is wonderful, which seems to be the narrative on here.

And what you describe regarding having a choice is what we had up until 1985 ish and from 1991 to around 2001.

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Better a debt slave than a rent slave? Or is it the other way round? Surely better not to be a slave at all but to have the choice between buying or renting on the best possible terms. Though the

were dealing with questions of prejudice rather than economic freedom the analysis is still potent. "Free your mind and the rest will follow."

If i had a crystal ball and was given the choice in 1999/2000 when house prices were probably about where they should have been in relation to wages, and i knew for a fact they would rise only with inflation until the day i died ... and i was to have a 90% mortgage at 6-7% ... i would say it is better to be a debt slave, as at least there will be a day comes when this ends ... for renters they will be rent slaves forever.

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If i had a crystal ball and was given the choice in 1999/2000 when house prices were probably about where they should have been in relation to wages, and i knew for a fact they would rise only with inflation until the day i died ... and i was to have a 90% mortgage at 6-7% ... i would say it is better to be a debt slave, as at least there will be a day comes when this ends ... for renters they will be rent slaves forever.

I've not seen anything from you that suggests you're a troll, so I mean the following in generous terms.

You've really missed the point in asset comparisons, by a country mile.

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I would much rather rent a property that I knew was part of a long term pension investment than some spiv amateur landlord who could jack up the rent or serve notice to quit on a whim.

A mass building programme of council housing would be even better. Like that's ever going to happen. ;) These build to rent homes may be a good compromise and will be good for all parties concerned.

Edited by MattW

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I've not seen anything from you that suggests you're a troll, so I mean the following in generous terms.

You've really missed the point in asset comparisons, by a country mile.

I gave my view on this -

"Better a debt slave than a rent slave? Or is it the other way round?

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I gave my view on this -

"Better a debt slave than a rent slave? Or is it the other way round?

Fair enough

The answer to that rather depends

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Fair enough

The answer to that rather depends

In my simple life of not wanting to deal with people with some sort of authority over me (eg landlords), owning is the only solution to enable me to have freedom.

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In my simple life of not wanting to deal with people with some sort of authority over me (eg landlords), owning is the only solution to enable me to have freedom.

Being master of your own destiny is a perfectly logical choice.

If I had the money I'd buy a house cash, yes I know there are overheads but then there isn't a landlord to deal with (I've been fairly lucky but I've had friends whose landlord entered their house with no notice to complain they'd put different curtains up). If its price goes down it goes down and everything else I've ever bought has gotten cheaper as it got older.

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Being master of your own destiny is a perfectly logical choice.

If I had the money I'd buy a house cash, yes I know there are overheads but then there isn't a landlord to deal with (I've been fairly lucky but I've had friends whose landlord entered their house with no notice to complain they'd put different curtains up). If its price goes down it goes down and everything else I've ever bought has gotten cheaper as it got older.

Hence why i never get this salivating about renting German style, most adults in Britain from the 50s to 80s could have got cheap long term rent in an ok house with the council as their landlord, but most who could afford to opted to buy ... tells us something regards to this renting is wonderful line ... and with the bedroom tax coming in those that didn;t buy their council house will have an unsettled end of life.

Soon everyone will be born in a hospital ran by a corporation, then educated by the corporations at a privatised school, housed by the corporation, join a privatised army, get banged up in a privatised jail, driven their by privatised security companies on privatised roads etc etc... And all the money for these private corporations will come from the taxpayer.

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'Build to rent' is just another financing and guarantee subisidy. Government could already build to rent en masse. They don't. The private sector could too. They don't much.

Instead everyone who rents will happily be shoveling more subsidisies towards landowners, developers and financiers - for them to build housing and collect rents from the people who paid the taxes to make it possible. Same social cost and downside, private benefit and upside as ever.

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