Three top property players say the sector can’t be left dangling by a hung parliament.
The three – Paresh Raja, CEO of MFS, Tarlochan Garcha, CEO of Kuflink and Fareed Nabir, CEO of LetBritain – spoke out with a new housing minister still to be appointed – and the sector having seen 15 housing ministers since 2000.
Raja wants a minister ready to recognise the “untapped potential” of property investors in contributing to housing supply through short-term refurbishment projects.
Garcha sees greater scope for the part alternative finance can play in supporting the next generation of property investors – offering new avenues to enter the property market through part-ownership opportunities and asset-backed lending.
To Nabir the rental system “must change” in order to meet the requirements of a more urban, mobile and tech savvy tenant population.
Here’s what the three have to say:
“At this time of momentous political change, it is vital for the next government to treat landlords and property investors like entrepreneurs, recognising the fundamental role they play in catalysing movement and stimulating growth in the residential property market.
“With demand outpacing supply, the government’s approach to the housing crisis has been limited, focusing on the short-term construction of homes instead of long-term solutions to create a more fluid market.
“At the same time, Buy to Let investors have been confronted by an additional Stamp Duty tax hike and changes to the mortgage interest rate relief.
“Investors can no longer be overlooked, but rather must be championed for their role in stimulating market activity and positively contributing to the UK housing supply through restoration projects and new developments.”
“With the total value of UK housing rising by over £1.6tn since 2005, there’s no denying the significance of Britain’s real estate market.
“Despite this, successive UK governments have failed to provide the policy foundations necessary to ensure the property market has long-term stability.
“Having gone through 15 housing ministers since 2000, the property market is suffering from a leadership deficit – to address this, we need a long-term housing strategy that addresses the key challenges facing UK real estate over the next decade.
“The announcement of the UK Housing White Paper was a welcoming step forward, but in order for the industry to thrive in the long run, the government must demonstrate a willingness to embrace new trends that are transforming traditional property practices.
“Alternative finance, for instance, offers the next generation of property investors new avenues to enter the property market through part-ownership opportunities and asset-backed lending.”
“Britain’s rental market is infamous for its ruthlessness, and now more than ever government action is required to protect the interests of Generation Rent.
“Average UK rents are now steadying, but there is nothing to indicate that this is a long-term trend.
“Despite the hung parliament, each of the major political parties has pledged to provide protection to renters from unscrupulous practices and to address the housing crisis by committing to the development of new residential properties.
“This is reassuring news – and hopefully this cross party consensus may reduce some of the pressures facing UK renters at present.
“In terms of specific policy towards the rental market, it is still very much a waiting game.
“Nonetheless, with our research showing that 40% of UK tenants think the current rental market is ‘ruthless and unethical’, a regulatory framework is clearly required to ensure that both renters and landlords are not victims of malpractice at the hands of estate agents.”