Thursday, August 23, 2012
Responding to today's Montague report findings, Ian
Potter, Managing Director ARLA, said:
"The Association of Residential Letting Agents (ARLA) welcomes
the broad recommendations outlined in the Montague Report.
However we do have concerns over the speed with which public
land will be made available, as land prices aren't proving
attractive enough to the current owners, be it a local authority,
NHS Trust or other public sector body.
"We also have concerns over the planning timescales which
developments have but agree that part of the success of any housing
policy in the present climate is to get the stalled sites moving.
We are a country in a general housing crisis and there is little
capital available for building new homes. If the long awaited
panacea of institutional investment can be realised, then we may
yet see some benefits.
"Any increase in supply will help address the issues of ever
increasing rents, as it is a supply and demand driven market.
However any institutional investment will look for a reasonable
rate of return to satisfy the demands for a return for the pension
or insurance fund, whose investors are the general public.
PriceWaterhouseCoopers recently released a report which indicated
that, until 2025, buy-to-let landlords can expect a better return
on other investments and this would be a concern for institutions
looking for effective investment vehicles.
"It remains to be seen whether or not a change to affordable
house building requirements is a bad thing. Affordable housing has
to be paid for by someone and it is naive to think that this rests
solely with the developer. More often than not it is the owners in
the development that end up underwriting the headline cost."