NEWS DAMIAN WILD
Private rented housing in the UK could account for one-third of all tenure, according to Legal & General Property managing director Bill Hughes.
“The PRS sector is underdeveloped in the UK and is an exciting opportunity,” Hughes told a MIPIM UK breakfast event, staged by EG and law firm McFarlanes. “It should be represent- ing around 30% of all tenure in the UK in the future. My feeling is it’s principally an urban phenomenon and L&G would absolutely expect to be at the vanguard of that investment.”
Pre-election jitters have hit the prime central London residential market as uncertainty over policy begins to bite. Speaking at MIPIM UK, Jonathan Samu- els, chief executive of Dragonfly Property Finance, said the market for properties valued above £5m was “coming off quite aggressively”, as factors such as mansion tax, strengthening sterling and the mort- gage market review hit. “It has become more expensive to buy
and we are seeing negative net yields once the costs are taken out,” he said. Adam Challis, head of JLL’s residential
research team, saw the market maturing, not turning, with the growth rate cooling. Pointing to price growth nearing 20%, he said: “That is not sustainable and it’s
SNAPPED ATMIPIM UK Bill Hughes
D 011AY 3 ONE IN THREE HOMES WILL BE PRS
£10bn-£15bn “with a bias towards social infra- structure, of which residential is a major part”, said Hughes, pointing out that L&G already controls around 27,000 residential units. “Over the past 18 months we have put around £2bn towards residential,” said Hughes, including “some PRS”. Also on the panel were McFarlanes part-
LONDON RESI GETS PRE-ELECTION JITTERS L&G already has £15bn committed to real
estate in the UK and could allocate a further
ner Anthony Burnett-Scott, First Base chief executive Elliot Lipton and Realstar Group vice chairman international Ryan Prince. WATCH THE VIDEO AT
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London and the South East must find space for more than one million homes by 2036 on top of what is currently planned, according to new research by planning, engineering and design consultancy AECOM. The shortfall was revealed after analysing
unrealistic going forward.” Greater London will become the prime
performer and volumes, a key indicator of market health, were still below what Challis called the “normal levels” of 2006. Housing has become a key political point winner and Nick Cuff of Pocket said: “Politicians, rather than kissing babies, are now out hugging cement mixers.”
127 local authorities within 90km of central London. AECOM claims that limiting analysis to the borders of the Greater London Authority ignored the 700,000 people that commute into the capital every day. Andrew Jones, EMEA managing director for design, planning and economics at AECOM, said:“To put the housing need across the London region in perspective, we need to build the equivalent of one new Milton Keynes every year for the next 20 years.”
EG breakfast: delivering PRS at scale
EG breakfast: Andrew Stanford, head of the Private Rented Sector Taskforce at the Department for Communities and Local Government
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