Mark Prisk, who replaced Grant Shapps as Housing Minister earlier this month, has called on buy-to-let landlords to bid for a share of a £10bn Government Guarantee, urging them to ‘provide the spark to get Britain building’.
Sir Adrian Montague’s report of the private rented sector made clear the potential for developing new homes built specifically for private rent, the funding of which was suggested to come from institutional investors. Mark Prisk made the argument, speaking at to the National Housing Federation in Birmingham, that social landlords could also make the most of the potential identified in the Montague Report.
To make his case, he pointed to the Thames Valley Housing Association’s ‘Fizzy Living’ scheme, which offers new purpose-built flats for rent on the open market in London’s East End. He would like for more landlords to ‘take that leap of faith’. He argued that housing associations, with their years of experience and expertise in providing affordable homes to rent and buy, can continue offering services for social tenants, but additionally offer homes for private tenants.
Mr Prisk has highlighted the the new Government measures brought in last week, urging landlords to take advantage of these new opportunities in order to make the most of this potential market. These new measures include new legislation for Government guarantees of up to £10bn for new rented homes, £300m capital funding towards delivering up to 15,000 new affordable homes, and to bring 5,000 empty homes back into use.
Mr Prisk said, “There’s a tremendous opportunity here. We know there is already a massive demand for housing in the private rented sector. Housing associations already provide excellent services to their tenants, but have the potential to offer homes to a much wider group of people.
“By making the most of the new and positive measures we’re taking, social landlords can branch out and provide the spark to get Britain building.”
Later speaking in a media interview he said, “My message to the National Housing Federation conference this week was let’s be bold. Housing associations are well placed to deliver homes for all types of housing need. Along with local authorities they have a very important role to play.”