The chief executive of Grainger, one of Britain’s biggest rental firms, has said that amateur landlords should give up and buy shares in her company instead.
Helen Gordon, whose company includes build-to-rent operations, told The Times that the traditional rental sector’s days are numbered.
She said: “Instead of people investing in buy-to-let properties, they should invest in a Grainger share. They would get 50% of our net rental income paid out as dividends.”
She said that for private landlords, “the tax regime looks increasingly unfavourable”.
She went on: “I think there are some big changes coming, which will make many people reconsider.
“Are landlords going to be able to compete with the big build-to-rent operators for amenities or quality? It’s very unlikely.
“Individual landlords will increasingly find it hard.”
She said: “In the past, people used to have awful student accommodation and then leave university and buy their own home.
“Today people often have fantastic quality student accommodation, full of amenities, and end up living somewhere really grotty. Why should they?”
Build-to-rent schemes that Grainger has completed include Clippers Quay in Manchester, with 614 homes.
Like many other build-to-rent schemes, its facilities include hotel-type facilities including a gym and concierge services.
However, critics say that many build-to-rent schemes are too expensive for most renters, are in cities, and not family friendly.
David Smith, policy director of the Residential Landlords Association, said: “This means that there will continue to be a very high demand for buy-to-let housing. This demand will mainly be met through rented houses rather than purpose-built flats.”