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Buy-to-Let market back to foundations
Property investors fearing diminishing returns from the buy-to-let market may be able to access off-plan rental accommodation through "build-to-let" schemes that the Government are currently looking at to bring more money into the rental sector.
The government realise that investment from buy-to-let landlords is not going to support its ambitious house building targets and as such may introduce new rules for developments by the private sector.
Discussions could lead to a number of Companies buying up land and building properties themselves which they would then let out to students, young professionals and families.
Build-to-let offers strong capital growth potential and can generate high yields. The build to let initiative is intended to stimulate the growth of new homes and bring a new wave of high-quality private rented accommodation on to the market, and traditional house builders are cutting back as prices have stagnated.
Slowly emerging opportunities for institutions are still limited and this build-to-let scheme would give institutions the opportunity to invest large amounts of capital into the market and manage it as a long-term asset.
Tags:
property, government
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