What is it? A new asset class, the next big thing in property, an opportunity for fleet of foot investor/developers, a consultants dream? Well PRS is all these things, and all have their place in the property world.
PRS? Private Rented Sector, flats and houses to rent! There is nothing new it seems, just give it a new tag and hey its the next bandwagon, but this one should run and run; so, unlike normal bandwagons, if you see this one, you haven’t missed it.
The great thing with PRS, which makes it more than a new tag, is that the major institutions have decided that this is a new asset class for the long term. As one of the top funds says, its a marathon not a sprint, it might be a triathlon in the end (not that I have done either!).
Any major long term investment by our leading Insurers and Pension Funds always provides opportunities; these large beasts need feeding, and once they find something they like, their appetite is insatiable. However, there isn’t an existing stock of property suitable to meet the needs of these buyers.
So all the advisors are staffing up, the opportunistic, nimble developers and investors are buying up stock and building, from a few units to hundreds, many hoping to sell on in a few years to the big beasts, the house builders can offload en masse, and so it goes on.The Government has set up a task force already doing great work.
The successful developers in the new PRS will be those who work closely with the major institutions ensuring that what they develop clearly meets the needs and demands of the new investors in this important embryonic asset class.
Lets remember though that PRS is all about peoples homes and their lives, so perhaps we can try and make PRS, Pleasurable Residential Spaces.
Apologies to any songwriters or musicians reading this in error and confusion, please go to www.prsformusic.com