The future of the Private Rental Sector (PRS) will increasingly be shaped by large-scale landlords and the Build-to-Rent (BTR) model, according to Andy Jones, Group Director of Corporate and BTR at LRG. Speaking on the potential shifts in the market, Jones highlighted the role of Labour’s rumoured Capital Gains Tax (CGT) and Inheritance Tax reforms, alongside stricter regulations, as key drivers of this emerging trend.
Jones pointed to the significant impact of Permitted Development Rights (PDR), which have allowed the conversion of commercial properties into residential units. This regulatory framework, he said, has led to a remarkable increase in returns on managed residential property portfolios over the past five years.
“The market for professionally-managed rental properties is set to thrive further if government support continues,” Jones asserted, suggesting that profitability within this sector is likely to remain on an upward trajectory.
In anticipation of these changes, LRG has established a dedicated department to cater to the growing needs of the sector. Jones advised that Small Self-Administered Schemes (SSASs) and Self-Invested Personal Pensions (SIPPs) are becoming increasingly attractive as tax-efficient investment vehicles within this space.
With new lettings legislation on the horizon, Jones believes that the professional residential lettings sector is poised for sustained growth. “The current environment is ideal,” he stated. “Demand for larger property portfolios is on the rise, and in such a competitive market, both sellers and investors must seek expert guidance to navigate the complexities.”
Jones emphasized the importance of comprehensive expertise in making informed investment decisions, highlighting LRG’s ability to offer a complete package of services. “We provide everything under one roof,” he said, referencing LRG’s advanced online platform that showcases property portfolios and delivers crucial data to clients, streamlining the decision-making process.
As the PRS evolves, Jones’ insights suggest that professional management and strategic investment will become increasingly essential for those looking to succeed in the market.