Starter Homes consultation shows welcome consideration for build to rent sector

23 Mar 2016

Policy area: Residential, Planning

The property industry has welcomed government proposals to allow build to rent developers to build Starter Homes off-site, or pay a commuted sum. 

In the Starter Homes Technical Consultation, released today, the government says "We propose that private rented sector developments could contribute to starter home provision and the requirement should be met through an offsite contribution for delivery of starter homes."

The British Property Federation has been calling for build to rent developments to be exempt from providing an on-site Starter Home provision throughout the Housing and Planning Bill process, as an unbroken block is more appealing to investors. 

Ian Fletcher, director of policy (real estate), at the British Property Federation, said: "We are pleased to see that our calls for build to rent to be treated differently have been recognised. An unbroken block where all the units are for rent is much easier to manage and much more attractive to investors, which is why a mix of private and discounted market rent system works well. The build to rent sector has the potential to deliver a significant number of new homes and drive up standards in the private rented sector, so it is good to see that Starter Homes will not be an obstacle to its development."