Grainger plc (“Grainger” / the “Company”)
GRAINGER BACKS MONTAGUE REVIEW AND URGES IMPLEMENTATION
- The UK’s largest listed residential landlord backs the Government-commissioned Montague Review of the private rented sector -
Grainger, the UK’s largest quoted residential property owner and manager, today throws its weight behind the recommendations of the Montague Review, the Government-commissioned “Review of the barrier to institutional investment in private rented homes” led by Sir Adrian Montague, with the hope that it will give a much needed kick start to large scale investment in the sector.
Key recommendations set out by the review, which Grainger urges Government to implement with urgency, include:
(1) A flexible approach to planning by local authorities to support the rental sector
(2) Release of public sector land for build-to-let developments
(3) Specially-targeted Government incentives to stimulate the development of new business models
(4) Establish a private rented sector Housing Task Force to drive forward build-to-let projects
(5) Establish a set of voluntary standards for the build-to-let sector, in conjunction with industry bodies
The private rented sector (‘PRS’) is a growing market, with increasing demand partly because of the difficulty to gain mortgage finance and the prohibitively high cost to get onto the housing ladder for many, but it is also an increasingly attractive option for many individuals because of its flexibility. To date PRS has suffered from a lack of large scale investment and an insufficient supply of good quality, attractive products. Grainger believes that the recommendations of the Montague Review will be effective in addressing these issues by making the sector more attractive to the institutional investment that is required to introduce the necessary scale and standards that will make the private rental sector fit-for-purpose.
Commenting, Nick Jopling, Executive Property Director of Grainger and a member of Sir Adrian Montague’s review group, said:
“The Montague Review is a critical step forward for the faltering UK housing market. We urge the Government to consider these recommendations with urgency and implement them as soon as possible to help kick-start the UK economy and address the country’s huge housing shortage.
“Having been a landlord for 100 years, Grainger has witnessed many cycles of renting versus home ownership, but recent trends and issues surrounding affordability mean that more and more people, including young families, are turning to the rental sector. It is therefore crucial that the sector is fit-for-purpose and able to meet the needs and aspirations of all those in private rented homes.
“The recommendations of the Montague Review, if implemented, could unlock a wealth of funding from long term, reputable institutional investors, such as pension funds, for the construction of good quality homes, built specifically for renting, which will not only give a much needed boost to the construction industry but will also provide the customers/tenants with the stability and security they want in their home.”
-ENDS-
For further information:
Grainger plc
Kurt Mueller
Tel: +44 (0)20 7795 4700
FTI Consulting
Stephanie Highett
Tel: +44 (0)20 7831 3113
Dido Laurimore
Tel: +44 (0)7801 654 424
Will Henderson
Tel: +44 (0)7930 371 924