Following the launch of its new fully integrated and nationwide Build-to-Rent (BTR) service with PRSim in September, GVA announces that the strategic partnership has been appointed by Scottish Futures Trust (SFT) to advise on the Rental Income Guarantee Scheme, the Scottish Government’s landmark policy for supporting the emerging professionally managed BTR sector.
GVA and PRSim have been appointed to the Property Advisory Panel for the Rental Income Guarantee Scheme, which aims to unlock potential BTR developments with at least 30 units, through the mitigation of risk around the initial rent stabilisation period. Through the scheme, the Scottish Government will underwrite 50% of any shortfall in rental income that is between 75% and 95% of the agreed annual core rental income forecast (ARIF), the annual cost of which will be 1.22% of the ARIF.
In their advisory role, GVA and PRSim will jointly assess and report on an applicant’s ARIF in order to agree a benchmark for Scottish Government support, creating attractive investment opportunities that will facilitate the growth of BTR in Scotland as well as deliver much needed accommodation against a backdrop of a continued housing shortage.
In a recent research report into Scotland’s housing market undertaken by GVA and PRSim, it was revealed that there has been an increase in the proportion of 16-34 year olds privately renting from 16% in 1999 to 40% in 2016, driven by both difficulties getting on the housing ladder as well as a change in lifestyle and view on rented accommodation. The report discovered that 71% of Scots are content living in a rented home, with 82% of people believe renting a property best suits their lifestyle.
Alastair Carmichael at GVA said: “The Rental Income Guarantee Scheme is a breakthrough policy by the Scottish Government and a real milestone in the evolution of BTR in Scotland. To have been appointed by the SFT in this nascent stage of our strategic partnership with PRSim is a strong endorsement not only of the strength of our combined offer, but also its uniqueness as we are the only true end-to-end experts operating a service in BTR. We look forward to developing this experience further through this innovative new Government policy and helping to deliver thousands of new homes to the Scottish market.”
Barry White, chief executive of the Scottish Futures Trust which manages the scheme, said: “RIGS has sent out a clear message which demonstrates the Scottish Government’s commitment to the Build to Rent sector as an important way to deliver much-needed quality housing.”