The up and coming build-to-rent initiatives should be applauded but will not solve the growing housing crisis according to Gavriel Merkado, chief executive of REaylse (pictured).
Despite being a drop in the ocean in terms of solving the problem, Merkado agrees that from an investment perspective it makes sense to do more of it.
He highlights central living as a prime example of the success of the initiative and the spread of developments outside of the exclusive London postcodes is also welcomed, as more move outside of the capital.
“The economy is in a transitional phase,” Merkado explains. “Technology is making distance less relevant and it is not as necessary as it once was.
“One of our developers lives in Brighton and he commutes [to London] in an hour and a half and it is a very attractive prospect.
“I think this is a trend that will continue over time and more people will move outside of London.”
Yet, with build-to-rent initiatives continuing their presence in London to allow first time renters on the London property ladder, northern powerhouses still have a long way to go according to Merkado.
“Whilst London is expensive, it is also great for employment as it is an international leader across so many industries.
“This means London doesn’t necessary lose its shine in any way, but there is gaining interest from a real estate perspective in these other cities.”
Merkado’s thoughts come after the recently released REaylse White Paper on the mispricing of the PRS, which outlined that PRS investment is currently undervalued by the market.
REaylse compiles data analysis for property developers, reportedly cutting costs and time by up to 90%.