The BPF has unveiled detailed proposals to radically boost the private rented sector in the UK (report linked here).

The country’s biggest property developers believe that a branded rental sector could offer ministers and home builders a lifeline in bringing vital investment into housing.

The report, ‘The Future of Renting’, is a response to a UK government review of the private residential rental sector and it calls for a radical reshaping of the housing market.

“We’re in a ridiculous position where we have increasing demand yet house builders are stepping out of the market because they have nobody to sell to,” explains Ian Fletcher, residential director at the BPF.

“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 and that the public had the benefits of a branded rental sector.”

With the buy-to-let market hit by the credit crunch, developers want a housing sector to mirror the commercial property market which could see longer term lettings and thousands of new family homes built by institutions, like pension funds.

It would help the wider market by increasing supply and ensuring the same level of choice that consumers have in every service industry apart from housing.

Among other proposals the BPF wants the UK government to incentivise residential letting property investment by:

- cutting unfair stamp duty rules that unfairly penalise large investors
- refine the REITs (real estate investment trust) structure to open it up to housing, as originally intended

The UK government’s review of the private rented sector is being undertaken by Dr Julie Rugg, from York University.  Details of the BPF