Generation Rent

The latest available figures showed that around 8.5 million people now rent privately in the UK with the sector now accounting for 19% of total households.

In contrast, the proportion of homes that are now owned with a mortgage has dropped by 15% in the 10 years to 2014, while private rented homes have increased by 69% over the same period.

To cope with the housing shortage, 240,000 new homes need to be delivered annually but the current output only averages around 150,000.

Build-to-Rent, where large-scale, purpose built blocks are being constructed and retained for rent is effectively a new sector of residential property and it is attracting the attention of new investors.

For investment companies with an existing property portfolio and expertise in Real Estate assets, the Private Rented Sector is seen as an opportunity with the potential to deliver attractive returns, backed by strong market and demographic fundamentals.

In addition, there has been a long-standing supply and demand imbalance and, more recently, broad Government support for the development of PRS as a sector for Institutional Investors.