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The obvious answer for this problem is for the major housebuilders to adopt a 'build to rent model' rather than 'build to sell'. It would eliminate the need fo
by dazc 8y ago
The obvious answer for this problem is for the major housebuilders to adopt a 'build to rent model' rather than 'build to sell'.
It would eliminate the need for a middleman who is often borrowing money to fund the purchase himself, adding further inefficiencies to an already inefficient business model.
The prospect of builders becoming long-term landlords may also incentivize them to build a house that will last the course of the tenancy?
- purple_ducks 8y ago??? Developers (who hire builders) go to market for finance - they don't have the funds lying around. Those financiers want a quickish (< 3/5 yrs) return, not a long term investment(20+ years).
- dazc 8y agoYes, I understand they want a fast turnaround on investment which is part of the problem.