Kath Scanlon examines whether the German PRS would work in the UK for View, an independent social affairs magazine
Kath Scanlon briefly discusses some of the possible implications of importing a German PRS model to the UK. After outlining positive and negative aspects, she concludes that it is not enough to know how other models work in other countries. The difficult part, it seems, is predicting how such models differ in this geographic context.
‘The German system has worked well for decades not only because of what it offers tenants, but also because of what it offers landlords. Here is another crucial difference: in the UK, especially in high-cost areas, small private landlords look for return in the form of capital appreciation rather than rental income. But in much of Germany real house prices haven’t risen for many years, so landlords look for long-term rental yield. Having stable tenants and low voids suits them’.
Click here to read the article in View, issue 35.