The PRS market has emerged in recent years as a key sub-sector of the UK residential market due to a series of short and long term economic, demographic and financial factors.

With good returns for relatively low risk when compared to other real estate sectors, low correlation to other asset classes, inflation linked returns and a counter-cyclical nature PRS has attracted significant attention.

GVA is a market leader in the provision of property and development advice to the UK Private Rented Sector (PRS). They estimate that there is c£30bn of equity targeting institutional grade PRS investment in the UK, which when combined with other capital equates to a potential investment pot of c£90bn.

It is not however just investors who are interested. Changing demographics and lifestyles mean that there is significant demand from tenants for high quality rental accommodation. This is not just driven by ever increasing un-affordability of for sale accommodation, but also because of a cultural change in the way being a renter is perceived. Generation Y demand high service levels and flexibility, they have also become used to high quality student accommodation.

This is all underpinned by central (and increasingly local) government support, including debt and equity and a £10bn Guarantee scheme for operating stock. Despite the unexpected lack of exemption from the new SDLT rates for large investors and the drive to home ownership, the government is making moves to professionalise the sector which is mainly attempting to make the sector less attractive for buy-to-let investors.

Alastair Carmichael, GVA’s Head of PRS, will be presenting the case for professionally managed and bespoke designed PRS schemes in Newcastle. In contextualising this, Alastair will utilise relevant case-studies from the UK and beyond, as well as giving an update on what PRS is and what market activity there has been.