Sentinel Housing Association helps to plug private rent gap
The Royal Institution of Chartered Surveyors (Rics) predicts private rents as well as house prices will rocket over the next 5 years.
The forecast comes in response to the Chancellors Autumn statement when he announced an increase in buy to let stamp duty and a cut in tax relief for private landlords.
‘This is yet another blow for people looking for a home’ says Mark Perry CEO at Sentinel ‘These changes make the buy to let proposition less profitable for private landlords and increasing their rents may be the only way to make the numbers stack up. It’s great that the government have put building new homes at top of their agenda but it’s not much help if people can’t afford to live in them.
Simon Rubinsohn, Rics chief economist has suggested that private rents could rise by 25% over the next 5 years. And the imposed cut in sub market rents over the same period could well lead to fewer affordable rental homes being built by housing associations.
‘Fortunately we’re in a good financial position and our development programme is fully funded for the next 3 years.’ adds Mr Perry, ‘We’ll continue to build homes for affordable rent and shared ownership but we’ve also identified a real need for good quality market rent homes too.
We’ve just transformed 2 office blocks into 112 apartments. And they were so popular that every home was reserved off plan. There’s likely to be an even greater need for this type of housing in future if the Rics prediction proves to be right.’
Earlier this year Sentinel signed their first joint venture agreement with Barrett David Wilson to build nearly 600 new homes on their Chapel Hill site in Basingstoke. The development will offer a range of homes and a choice of tenures including, rent, shared ownership and outright sale.