The British Property Federation (BPF) has urged the Government to accept the findings of the Montague Review, which it believes will help unleash fresh funds for the construction of much needed new home across the country.
With housebuilding at a post war low despite increased demand, and figures from the Office of National Statistics showing UK GDP held back by a weak construction industry, the Review, led by Sir Adrian Montague, examined the barriers to institutional investment in private rented homes.
The recommendations in the Montague Review are being supported by the BPF because it believes that it could help release fresh investment in housebuilding from pension funds, insurance companies and REITs.
"Encouraging institutions into building homes for rent has for some time been seen as the holy grail in enabling a long term private rented sector which is designed and built-to-let and offers renters something a bit different in the marketplace," said Liz Peace, chief executive of the British Property Federation.
She added: "The recommendations in the Montague Review will help address the barriers cited by the institutions and provide an inclusive model, which housing associations, home builders, property managers and construction firms can all participate in."