Car parks are housing 'goldmines', say property chiefs

Published by Max Salsbury for 24dash.com in Housing and also in Development, Local Government

Councils have been called on to convert old car parks into rental blocks.

Property chiefs speaking at the IPD Alternative Real Estate Investment conference in London have said that redundant car parks and office buildings are housing "goldmines" that are ideal for redevelopment, and would allow councils to "enjoy guaranteed long term income without any up front cost".

The call follows a landmark deal in west London that will see a former Kensington car park developed into housing by landlord Grainger.

Figures publicised by IPD, a firm of global property performance analysts, show that rental housing has continued to outperform traditional investment in offices, shops and warehouses that pension funds have traditionally favoured for safe, long term annuity.

Phil Tily, managing director of IPD in the UK and Ireland, said: “Rental homes should be an open and shut investment case for pension funds, but there’s still an element of perceived risk around planning and construction. Getting this kind of model off the ground would help allay fears from institutions and over the next decade, rental homes could begin to sit alongside offices and shops as an investment class for leading funds.”

Nick Jopling, executive property director at Grainger Plc, said: “Councils are struggling with cuts, rising housing demand and vacant sites which lose money every day. There are many goldmines of opportunity out there to get long term income with little or no outlay. Our recent deal with the Royal Borough of Kensington and Chelsea will help pave the way for other local authorities to find creative ways of securing long term secure income and make better use of their land holdings.“