Political Shifts and Their Impact on the Rental Sector

As political uncertainty looms, Michael Gove’s departure and Greg Clark’s appointment mark a significant shift for the residential sector. While Gove's tenure was brief, his impact on housing policy—particularly rental reform—was beginning to take shape.

Gove’s Push for Rental Market Reform

Although Gove didn’t explicitly champion Build-to-Rent (BTR) or institutional investment, his rental reform agenda signaled a need for change. His white paper emphasized high-quality rental homes, better customer service, responsible landlords, and sustainability—principles that align closely with the BTR model.

The Decline of Traditional Landlords and the Rise of Institutions

Gove’s policies continued the shift away from buy-to-let landlords, with up to 50,000 rental properties expected to exit the market in 2022. This exodus creates an opportunity for institutional landlords, who offer a more professionalized rental experience and long-term investment in communities.

The Conservative Dilemma: Homeownership vs. Renting

Challenging the party’s traditional homeownership-focused stance, Gove acknowledged the growing rental demand, fueled by post-pandemic trends such as remote work and social connectivity. He saw an opportunity to engage younger voters and deliver on the government’s levelling-up promises through a stronger rental sector.

Will Greg Clark Continue Gove’s Rental Strategy?

With Clark now in charge, the industry awaits his stance on PRS and BTR. However, the increasing demand for better rental housing, ESG considerations, and net-zero goals make it difficult for policymakers to ignore the sector’s role in the future of UK housing.

BTR’s Growing Momentum and Policy Shifts

Despite economic headwinds, BTR investment is on the rise, with local authorities increasingly adopting BTR-friendly policies. As operational stock grows and BTR’s role in levelling up becomes clearer, central government may recognize its potential as a long-term solution for the UK housing market.