The Private Rented Sector (PRS), professionally owned and managed new homes for rent, is gaining importance in England, as many operators are exploring markets outside London, with demand picking pace.
According to the latest Residential Market Commentary by global real estate services company Cushman & Wakefield, the PRS is growing at an “astonishing speed” in England. “Of late, a number of operators in this field have shifted some of their focus away from London, towards regional core cities, with the number of regional units either complete, or in the construction process,” the company said.
Though London remains the top destination for investments into PRS sector, Manchester is the most active market outside of the UK capital. As many as 19 schemes are currently under construction in Manchester and they will add 6,000 homes for the private rental market. London leads the PRS market with 16,000 units under construction.
Going forward, the PRS will assume greater importance as the construction of new homes is showing signs of a slowdown in the first half of 2018. Moreover, the construction of social housing homes has fallen drastically in 2018 (down by 29 per cent in the first three months of 2018 when compared to the corresponding period in 2017).
These developments will impact the housing market from the long-term perspective, thereby making the PRS an attractive investment option.
The professionally owned and managed new homes sector of the English Private Rented Sector (PRS) continues to grow at astonishing speed.