Across the political spectrum it is recognised that the housing market is facing challenges on all sides. Both the Government’s housing white paper published in April 2017 and Labour’s ‘New Deal on Housing,’ advocate a housing target of 300,000 new dwellings per year to try to address the key issues of supply and the consequent impact on affordability. England has the worst levels of housing affordability in the OECD with average house prices now representing 8 times average salaries; in 30% of local authorities that ration grows to 10 times average salaries. The private rented sector, which is the natural alternative for many of these buyers is predominantly comprised of private, small scale ownerships of varying quality, although recent changes in taxation and costs of entry are markedly affecting this sector. The PRS REIT plc is creating a portfolio of newly built, professionally managed housing in popular, convenient locations as a real alternative for families, singles and downsizers.
The Company aims to provide investors with an attractive level of income together with the prospect of income and capital growth through investment in a portfolio of newly constructed private rented properties comprising mainly family homes. The properties will be let on Assured Shorthold Tenancies to qualifying tenants. The properties will be located across multiple sites in key cities and towns across England with a focus on the main conurbations, and largest employment centres, outside of London. The locations closely follow the main road and rail infrastructure, including the proposed HS2 and HS3 rail network.