A tenant could soon be able to walk into a block of flats in almost any town in the UK and find identical features and quality, under plans to introduce US-style mass-produced rental accommodation.
Backers of standardised rental want to provide an alternative to navigating the hazardous UK market, which is dominated by individuals and small businesses. The option will move the country closer to the US, northern Europe and parts of Asia, where this sort of rental experience is widespread.
Aviva Investors is one of a number of institutions looking to raise funds to create an asset class out of rental homes in the UK. In doing so Aviva – and others likely to follow its lead – will be answering the government’s call for greater involvement in the private rental sector to bridge the funding gap left by the banks’ retrenchment and for a sales route to stimulate house building.