Housing as an infrastructure investment
In the UK, there are significant problems with the affordability of housing. These issues have consequences for the wider economy in terms of household disposable income and declining productivity. Yet housing is not yet fully integrated into the government’s infrastructure plans.
Housing investment has traditionally been the domain of the private investor, but recently institutional investors have started to increase their activity in the private rented sector (PRS). This section considers these developments and whether purpose-built residential assets can be financed on a long-term basis. It is argued that this type of housing investment may be considered in a similar way to other infrastructure investments, such as energy investments. With further backing, professionally managed residential assets may potentially have a positive impact on the wider UK economy.
This section opens with a broad assessment of the housing market as it currently stands, before illustrating how recent developments have changed the landscape of the industry. There is a discussion of the build to rent sector and its government regulation, as well as the influence of private finance. Finally, the section closes with the subject of housing in the context of local authorities and the wider economy.