Long term investor M&G, part of the Prudential group, has revealed more details about the PRS development in Acton where it is backing a build to rent development of 152 flats. M&G has forward funded a development by HUB, with a £43.5m development, previously reported here.
There will be a full-time concierge on hand, space to store bicycles, and long term contracts giving tenants the reassurance they can stay for as long as they want. And there will be a party or function room, that residents can hire if they are having a party, or the family gathering gets too big to be accommodated in their flat.
“These will be homes for normal working people, not oligarchs,” Alex Greaves of M&G told the Guardian recently. “In a typical buy-to-let the tenant knows the letting agent, but not the owner of the block, and doesn’t know who to call if things go wrong. Our properties will have a single manager, with on-site service. We will have economies of scale that individual buy-to-let investors don’t have. If we can keep the tenants happy we hope they will stay longer and we get lower voids.”
The Guardian also notes that the growth of purpose-designed, build-to-let blocks should also reduce the quantity of new homes grabbed for purchase by small scale, buy-to-let landlords. This should have a positive knock-on effect, reducing price inflation in the housing sales market, and giving first time buyers a greater chance.
With its upcoming Crossrail train connections, Acton is a development hotspot for private rented sector developers. PRS specialist Essential Living recently purchased the Perfume Factory nearby, which has potential for conversion into around 500 flats. Essential Living is expecting to start work on the project in 2016.