What’s Going On Here?
Knight Frank (a major property consultancy firm) predict a £35bn investment for the UK private rental sector leaving real estate lawyers eager in anticipation for year ahead.
What Does This Mean?
The start of 2017 has seen the media frequently document that houses below the value of £300,000 in London are heading in the direction of our membership within the EU: extinct. The combinations of an extortionate housing market and the multiple geo-political shifts have left the UK facing inevitable growth in the private rental sector. In contrast to the uncertainty of Brexit, real-estate lawyers are set to be in high demand with the future of the market looking prosperous.
Why Should I Care?
In stark contrast to the government under David Cameron, the new prime minister is set on rejuvenating her approach to the housing crisis. Housing shortage is a real problem in the UK at the moment and Theresa May’s Government have renovated the solution by promoting optional solutions, like private rental properties.
In a bid to stimulate the market investment, London’s mayor, Sadiq Khan, has created an exception for those intending to build exclusively for the private rental sector. In recent months, Khan had stated that developers building private rental housing would be exempt from the “35% affordable housing quota” which is a major hurdle for building development companies.
With these new government incentives, 2017 looks to be a promising year for all law firms heavily involved in property. The Head of UK Real Estate at Linklaters, Andy Bruce, stated in a recent report that 2017 ‘promised even more activity in the private rented sector’. The investment gives rise to an increased demand for legal advice for investors and developers.
The future looks to be an exciting time ahead for young lawyers interested in real estate and property law as the UK regulations evolve.
Article written by Emma Kate C.
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