Changes proposed in the just-released Draft Affordable Housing and Viability Supplementary Planning Guidance will “dramatically” increase the number of Build to Rent developments in the London market, according to new predictions.
Knight Frank says Mayor Khan’s Affordable Policy, details of which were unveiled last week, heralds a “significant” change for the sector; the agency expects that most major central London schemes will involve a PRS component as a result, considerably boosting the provision of private and affordable rented accommodation in the capital.
Robert Sheldon, Affordable Housing Consultant at Knight Frank: “This directive will unlock thousands of new rental homes across London, encouraging a new wave of investment into both the PRS and affordable housing sectors. The proposed changes in legislation will result in PRS developers now able to compete more evenly with those building for private sale. This announcement is undoubtedly a positive for London’s PRS sector and is set to boost the delivery of much needed private and affordable rented accommodation in the Capital.”
The announcement acknowledged that Build to Rent schemes are unlikely to reach the Mayor’s 35% affordable housing target set for private sale resi developments; instead each Build to Rent scheme will be subject to viability assessments to establish the percentage of affordable housing and the levels of discounted rents that’ll be charged.