Build to rent set to boom after demand from institutional investors?

The government backed Montague Review into Build to Rent has identified a significant interest from institutional investors in funding build to rent projects. Small changes to legislation could create a boom for the build to rent sector. With significant amounts of investment available from pension funds, insurance companies and property REITs. There is a great deal of examination being carried out into removing these investment barriers. Many institutional investors are attracted to this sector of residential property investment because there has been such a marked demand for these properties from tenants. The growth in demand has been described as rapid with input from big hitters in the property industry like, the British Property Federation, Association of Real Estate Funds and the Investment property Forum. The use of 106 agreements in conjunction with 10 year affordable rent covenants will make many developments stack up where in usual market conditions they have been unlikely to be built out. This also provides the government with a cost free method of boosting housing supply with the option to raise funds from the sale of publically owned land.