Following the release of the Draft Affordable Housing and Viability Supplementary Planning Guidance, signed off by London Mayor Sadiq Khan, Knight Frank predicts that the changes proposed will dramatically increase the number of Build to Rent (PRS) developments in the London market.
The recent announcement acknowledges that Build to Rent schemes are unlikely to reach the Mayor’s 35% affordable housing target that has been set for private sale residential 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 will be charged.
In light of the announcement, Knight Frank anticipates that most major central London schemes will comprise a PRS component as a result of the proposed changes, accelerating the provision of private and affordable rented accommodation.
Robert Sheldon, Affordable Housing Consultant at Knight Frank, commented: “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.”