Residential Letting & Property Management
Overview
The viability of the Build to Rent (BtR) sector, particularly in multi-family housing (MFH), continues to be a focal point of discussion. Recent interest rate reductions have provided a welcome impetus for the market, fostering a more favourable environment for investment. Whilst the landscape remains challenging, single-family housing (SFH) continues to thrive. Unfavourable tax conditions and rising borrowing costs that had impacted traditional housebuilder sales is resulting in a greater openness to institutional deals. This environment has created opportunities for institutional investors with more favourable capital positions. However, another rate cut would further bolster confidence and support the sector’s growth.
Data also tells us that BtL landlords are exiting the space with up to a quarter of tenants on some Allsop SFH sites coming from rental properties that are being sold. That shrinking of supply and the comparative security offered by an institutional landlord is a compelling reason for many customers to consider SFH. It is no surprise that our SFH schemes are stabilising at 98% occupancy and well above what would have previously been seen as the “glass ceiling” for rental in the area.
Who is Active / Headline Deals
It has been an exciting year for Allsop’s SFH function having launched 8 different SFH communities for the likes of Packaged Living, Kennedy Wilson and Urban Vision. Market sentiment is clearly strong with Kennedy Wilson most recently completing on their schemes in Norwich.
In terms of MFH we anticipate launching 2 sites in Leeds within the quarter and will also shortly be taking on our 2nd operational asset in Liverpool on behalf of Columbia Threadneedle. Allsop’s first scheme in Liverpool, The Keel, continues to demonstrate the credentials of the Liverpool market and so we are confident Milliners Yard will also be a great success.
Direction of Travel
For SFH, what may have started as a temporary measure while awaiting improved market sentiment, is now increasingly recognised as a viable profit centre. This approach complements Section 106 commitments and open market sales, providing valuable cash flow and helping to establish project identities more rapidly. We understand significant capital is coming into the sector and Allsop is uniquely placed with our specialist management and agency teams to offer marketing leading advice.
Podcast
Renters' Rights Bill - No reason to panic
In this latest podcast, Jack is joined by Kelly Smith and Nicola McKernan from Allsop Letting & Management to discuss the proposed Renters' Rights Bill as published by Labour. Kelly and Nicola share their views on the industry challenges and why this is a time for calm with the proposed changes being mostly positive.
