NLA opposes shift towards US style rental sector

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by Gill Montia

The National Landlords’ Association (NLA) has voiced its opposition to renewed calls for large institutions to invest in property to let, moving the UK market closer to the US model.

The association is concerned that if large companies are offered incentives to invest intensively in rental accommodation, the UK’s private-rented sector would cease to be diverse and able to meet the different needs and budgets of tenants.

Politicians are currently considering schemes which would be funded by the private sector and provide professionally-run rental accommodation.

Grainger, the UK’s largest residential property owner, and Unite, which develops privately-managed student accommodation, are both reported to be interested in the market.

However, NLA would prefer to see any investment incentives aimed at all landlords, to ensure that the private-rental market remains open and diverse.

According to David Salusbury, chairman of the NLA, this diversity needs to include the lower end of the rental market, which is frequently seen as “low-profit” but houses some of the most vulnerable people in society.

Mr Salusbury sees no evidence that large corporate investors are concerned about developing housing for the more vulnerable groups in society and would expect them to focus on high-profit areas of the market.

He also points out that there are few similarities between the UK and the US housing markets.