A contributor to the Big Issue magazine says corporations that become landlords may be better at it - and better for tenants - than typical buy to let investors.
Jonn Elledge, who regularly contributes to the Big Issue and to the left-wing political weekly New Statesman, says many tenants might feel that a corporation would be a less sympathetic entity than a buy to let landlord who has one or two investment properties.
However, he dismisses the value that amateur buy to let landlords bring to the rental market and suggests that corporations are likely to be better resourced to handle repairs, will have brand reputations to bear in mind, and will be more capable of handling frequently-changing regulation and legislation
“A private rental sector with a bigger corporate presence is likely to be a much more professionalised private rental sector, in which landlords understand that tenants are a customer and providing for them is a job – as opposed to the status quo, in which some landlords seem to think tenants should be grateful for the opportunity to rent from them” says Elledge.
The article does not mention the Build To Rent sector by name, but the writer makes several favourable references to John Lewis, the retail organisation which says it wants to diversify into BTR in a bid to ease its reliance on shopping-related income.
According to the Build To Rent specialist management firm Ascend Properties, BTR currently accounts for 53,750 homes within the private rental sector - that's a 135 per cent rise over the past four years but still constituting only around one per cent of the overall UK private rental sector.
You can see the full Big Issue article here.
*This article was amended on March 29 2021.
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