by Tom Lloyd | Inside Housing
Housing associations could play a key role as managers of homes they do not own if institutional investors buy into the housing market, a key advisor to Grant Shapps has said.
Jake Berry, who is MP for Rossendale and Darwen and parliamentary private secretary to the housing minister, told a seminar this morning that management is a ‘real opportunity’ for the sector.
Speaking at the event on public land supply, organised by housing association alliance East 7, Mr Berry said: ‘Social landlords have the real expertise in managing property… getting large management arms is maybe something we should encourage.’
The government is looking for ways to get institutional investors – such as pension funds – to spend money on developing homes for private rent. It has commissioned an independent review on the subject from Sir Adrian Montague, which is expected to favour the private rented sector over affordable housing.
MrBerryadmitted the government has struggled to convince institutional investors to spend money on homes, but said problems with the real estate investment trust regime and stamp duty are being addressed.
‘Having spoken to [institutional investors] they say the real reason they haven’t invested is there is no track record,’ he said.
‘It’s chicken and egg. I think we have got to get a few of these away to show it is model that works.’
