Scaling Up Build to Rent: Government Action Needed to Boost Sector

New Ground Capital's Queenstown apartment complex is one of the few completed build to rent developments in New Zealand.

The build to rent sector in New Zealand holds significant promise for addressing the housing crisis, but experts say it needs more government support to truly scale up. This article, originally published on Stuff, highlights the urgent need for policy changes to encourage investment and development in this growing sector.

The Promise of Build to Rent

Build to rent (BTR) is a model where properties are designed and built specifically for long-term rental, rather than for sale. This model is common in countries like the UK and the US, where it has been successful in providing high-quality, stable rental housing. In New Zealand, however, BTR is still in its infancy.

Government Support is Crucial

The New Zealand Property Council has called for more government action to support the build to rent sector. Leonie Freeman, CEO of the Property Council, emphasizes that policy changes are essential to attract investment and encourage large-scale development. These changes could include tax incentives, streamlined planning processes, and financial support for developers.

"Without government action, the build to rent sector will struggle to scale up and provide the housing solutions New Zealand desperately needs," says Freeman.

Potential Benefits of Build to Rent

Build to rent developments offer several advantages over traditional rental properties. They often include amenities such as gyms, communal spaces, and on-site management, which can enhance the living experience for tenants. Moreover, because these properties are designed for long-term rental, they can provide more stability and security for renters compared to typical private rentals.

A Call for Investment

Investment in the build to rent sector is growing, but it remains limited compared to other countries. Freeman notes that encouraging investment from both domestic and international sources is vital for the sector's growth. "We need to create an environment that is attractive to investors. This includes providing clarity around regulations and ensuring that the financial returns are competitive."

Real Examples and Success Stories

In countries where build to rent is well-established, it has made a significant impact on housing availability and quality. For example, the UK has seen a surge in BTR developments, providing thousands of new homes and setting a benchmark for what can be achieved with the right support.

The Way Forward

For New Zealand to realize the full potential of the build to rent sector, coordinated action from both the government and private sector is required. This includes adopting policies that support development, fostering investment, and learning from international best practices.

"New Zealand is at a crossroads with its housing crisis. Build to rent could be a game-changer, but only if we take the necessary steps to support it," says Freeman.

In conclusion, the build to rent sector offers a promising solution to New Zealand's housing challenges, but it requires a concerted effort from all stakeholders to scale up. With the right policies and support, build to rent can provide high-quality, stable rental housing that meets the needs of New Zealanders.

This article is based on content originally published on Stuff. For the full article, visit Stuff's website.