PRS UNDER THE SPOTLIGHT

Recent research has found that the UK’s private rented sector (PRS) has more than doubled in the last 14 years, and with the property market continuing to boom – particularly in London – it’s only set to keep expanding. In fact, as banks clampdown on mortgages and would-be buyers look for more flexibility, many are predicting a rental revolution.

With this in mind, increasing numbers of developers are looking at PRS as a lucrative investment strategy. However, to ensure financial viability such properties require a more tailored design approach than those for sale. At the recent RESI Investment Conference, Monica Coffey learnt there are three key elements in successfully designing for PRS:

1. Efficient spatial planning – in order to maximise unit numbers and sizes, floor plans need to be carefully considered to optimise net to gross ratios.

2.Standardisation – making use of Modern Methods of Construction through repeated, standardised components significantly reduces build costs and time.

3. Adding value – particularly in terms of amenities outside of people’s homes; gyms, lounges, gardens and terraces can all add to rent values.

We are increasingly becoming involved in these projects, firstly at Notting Hill Housing’s North Circular Road portfolio and currently on a significant scheme in Whitechapel with 390 PRS units. The homes themselves have been designed with bespoke typologies appropriate to the sector, whilst meeting the three key elements outlined above.

It seems we are on the cusp of a major change within the house building industry, one which will require the Government’s support and guidance to maximise its potential. Nonetheless, we have the knowledge to help our clients introduce private rented accommodation into their schemes as the sector develops.

  • 14.12.09 PRS NCR

PRS UNDER THE SPOTLIGHT

Recent research has found that the UK’s private rented sector (PRS) has more than doubled in the last 14 years, and with the property market continuing to boom – particularly in London – it’s only set to keep expanding. In fact, as banks clampdown on mortgages and would-be buyers look for more flexibility, many are predicting a rental revolution.

With this in mind, increasing numbers of developers are looking at PRS as a lucrative investment strategy. However, to ensure financial viability such properties require a more tailored design approach than those for sale. At the recent RESI Investment Conference, Monica Coffey learnt there are three key elements in successfully designing for PRS:

1. Efficient spatial planning – in order to maximise unit numbers and sizes, floor plans need to be carefully considered to optimise net to gross ratios.

2.Standardisation – making use of Modern Methods of Construction through repeated, standardised components significantly reduces build costs and time.

3. Adding value – particularly in terms of amenities outside of people’s homes; gyms, lounges, gardens and terraces can all add to rent values.

We are increasingly becoming involved in these projects, firstly at Notting Hill Housing’s North Circular Road portfolio and currently on a significant scheme in Whitechapel with 390 PRS units. The homes themselves have been designed with bespoke typologies appropriate to the sector, whilst meeting the three key elements outlined above.

It seems we are on the cusp of a major change within the house building industry, one which will require the Government’s support and guidance to maximise its potential. Nonetheless, we have the knowledge to help our clients introduce private rented accommodation into their schemes as the sector develops.

  • 14.12.09 PRS NCR