For-Profit Registered Providers will own 150,000 homes by 2030

For-Profit Registered Providers (FPRPs) are now controlling 43,100 homes and that figure is projected to triple by 2030, Savills says.

The property consultancy adds that this booming sector is attracting a diverse pool of investors keen to secure stable, long-term returns while addressing the nation’s housing shortage.

The consultancy is highlighting the sector’s evolution, noting that investors are adopting varied strategies.

It says: “There is a clear ambition from investors to scale up their portfolios within the sector and create secure, long-term income streams.

“At a time where housing associations are increasingly looking inwards and allocating resources to their existing homes, this investment could be really beneficial in helping to meet demand for affordable housing.”

Quarter will be socially rented

Savills says that a quarter of the sector’s housing stock will be for social rent and the influx of private capital could ease pressure on housing associations.

Especially since many of these are increasingly focused on maintaining existing stock.

Savills says: “This could either be by investing directly in new homes or by taking on investment into existing homes and releasing capacity for housing associations, or as we are finding, both of these.

“But there are barriers to reaching these ambitions, largest among them the level of funding subsidy available from government to help build affordable homes.”

The firm also warns that there’s a lack of clarity on some policy issues as well as on the ability of landlords to increase rents in line with inflation.

That is leading to ‘caution from investors’.

1.5m new homes target

Savills goes on to say: “If the Government is to meet its target of delivering 1.5 million homes over this Parliament, there will need to be a significant increase in affordable housing delivery.

“It will be essential to put in place a policy framework within which fund managers and investors have the confidence to invest over the long-term.”

Partnerships between housing associations and private investors are proving vital.

Savills says: “We’re seeing a kaleidoscope of funding and delivery models emerge.”

These collaborations are diversifying how affordable homes are delivered, blending public and private expertise to meet soaring demand.