Sir Adrian Montagues report came approximately a decade after the Kate Barker review , first published in August 2012 it was commissioned by the government to present strategies that are aimed at jump starting the UK house building sector, almost a decade after the Barker review the housing problem was intensifying ,increased prices ,less stock and a higher population, the highlights of the in depth report are that the government needs to lead a partnered and coordinated foray into residential development, the very barriers that do not exist in the commercial investment arena, exist in the residential market and these are prohibitive, his theory points to remove these barriers and the problem will solve itself.by allowing the free market to actively participate on an institutional scale introducing high volume ,high quality commercial operators that until now were to shackled by bureaucracy to enter the residential market.
Recommendation One. : Local authorities must use a flexible approach to plan for and to allow developments of privately rented homes, where they meet local’s needs. The NPPF (National Planning Policy Frame Work) proscribes for this by allowing a ‘flexible and permissive’ approach .but currently both housebuilders and councils lack experience for developing proposals for build to rent schemes
Recommendation Two. : The government had then committed to release public sector land with capacity for 100 000 homes to build thereon by 2015.Additionally each department had specific targets for land release and had to report back on the progress of these releases, the government should maintain this policy and in addition make available reports detailing public land that is released for private rented projects.
There needs to be an accelerated emergence of schemes that reflect what the market is looking for, and that they can deliver predicable, reliable returns and yields. Thus the government needs to develop carefully targeted incentives to give birth to new business models from a host of providers, public sector landowners and finance providers. This is primarily aimed at attracting the private sector funds, stock market based funds that are quantified in the 100s of billions and trillions of pounds, these funds are what is required to tackle large scale problem of this magnitude.
Recommendation Four. In order to provide some of the expertise and support to overcome barriers around the unfamiliarity of these schemes, government should establish a dedicated Task Force focussed on private renting to act as an enabler.
Recommendation Five. The emergence of a stronger, high-quality private rented sector will enhance the lives of many graduates, young professionals and couples with small children, not just as a stepping stone to eventual occupation, but also because it caters for their need for flexibility in accommodation as their careers start to take shape
Until this point small scale uk investors in there millions by the majority owned the bulk of the private rented stock, these included private companies ,individuals ,and small scale enterprises owning small scale operations of 1 additional home to a few hundred homes ,and occasionally a few thousand.But clearly following on from the Montague report a more industrialised ,institutional type investor was required to foray into the private rental market, develop, and manage the 100s of thousands of rental units needed to start addressing in part the behemoth problem.
As an added benefit to the uk housing crisis these types of companies make available a valuable contribution to the housing shortage, and whilst they are not selling these to the first time buyers they are a valuable source of rental accommodation that creates its own market dynamics bring competition for tenants resulting in stability of pricing, and better products offered.