National Landlords Association voice concerns

Encouraging investment in residential property by large corporations and consortia of investment vehicles has been a long term objective of successive governments. On numerous occasions the press and various stakeholders have lauded the imminent arrival of new investors and investment models.

Recently the light-hearted term ‘Tesco-isation’ of rental property has come to the fore and a selection of traditional financial institutions have indicated an interest in residential property. However, as yet, such initiatives have failed to arrive. The NLA believe that we need communities that are diverse with decent and affordable housing that is a mixture of owner-occupiers, social housing and privately-rented accommodation. The concerns of many will be that corporate management can seem distant and not 'hands on' or local.

A residential housing block that is owned and run by a large corporate does not guarantee tenants will be better catered for or that standards will improve. Government policies should encourage a diverse mix of housing tenures and we believe that corporate managers must be able to demonstrate their commitment to the most vulnerable in society and the communities in which these people live. We do not believe that institutional investors should be encouraged at the expense of reputable private landlords.

This kind of involvement by corporate investors will not root out rogue landlords who will remain under the radar and will be very hard to stop. What this could do is drive good landlords out of the sector, reducing choice and forcing families to pay the premium for corporately-managed accommodation with no alternative for cheaper yet decent housing.