Invest to Rent

Invest to Rent is a guide for councillors and other interested parties, produced in partnership with the British Property Federation (BPF).

Since the 2008 credit crunch existing models of housing delivery have been under severe strain. A combination of reduced public spending, tighter borrowing terms from banks and mortgage companies and ever growing demand for housing has seen the housing market consistently failing to deliver the number of new homes Londoners need each year.

Institutional investment, from organisations such as pension funds and insurance companies has for some time been discussed as a potential source of funding to help bridge the gap. However, despite efforts from many organisations including the HCA (Homes and Communities Agency) deals have been slow to come forward, in many cases because proposed schemes do not offer investors a favourable enough return.

The public sector and in particular local authorities may be able to tip the balance on some schemes, either by investing their own assets, such as land, or by working with partners on section 106 contributions.

This guide is intended for local authority councillors and other interested parties to look at the type of housing schemes that could be developed and identify what both investors and councils are looking in future partnership arrangements.

Invest to Rent was launched on the 10th February.