Challenging regulatory requirements, tax, planning and most of all, rent controls have the potential to stifle the growth of the PRS sector according to our real estate sector respondents. Zoning issues and building codes were cited as particular issues by our interviewees.
The message from the industry appears to be that governments need to act as effective partners, rather than in ways that hinder the creation of new homes of all types. Less regulation, greater flexibility in terms of planning and tax incentives could pave the way for faster progress.
It is interesting that the most commonly cited risks are all essentially what we might call supply-side risks. The tenant perspective comes further down the list, showing the industry is relatively confident it knows what its customer wants.
For more on the real estate sector’s perception of the risks and rewards of the PRS sector, please download the full Urban Being real estate report.