LETTINGSnews


PORTFOLIOS A Fizzy initiative


Thames Valley Housing Association (TVHA) has launched a new initiative which provides long term high-quality homes for the private rented sector on a large scale. The project aims to build a


portfolio in excess of 1,000 apartments for private rent targeted at young professionals in London and the South East. So far, TVHA has acquired 63 apartments which will be available for rent in Epsom this summer. Plans are to fund this £200m investment programme with £120m debt and £80m equity, with TVHA being a significant equity participant. The portfolio will be managed and let by FizzyLiving Limited, a new commercial subsidiary of TVHA. FizzyLiving will offer good quality accommodation, in easy commutable locations, and a management service that makes life simple, a package that is currently lacking as an option for young professionals in the private rented sector.


Harry Downes, FizzyLiving’s MD, INSURANCE Under insuring can cost landlords dear


If property owners put too low a value on their property, there can be a high price to pay later,


according to property insurance specialists, Cadogan Keelan Westall. Insurance is a cost that many property owners pay little attention to. But although property insurance premiums are relatively stable, the amount most property owners need to insure is on the increase, as values and rebuild costs rise.


Analysis of recent claims by


Cadogan Keelan Westall, shows a rise in under-insured properties. Jonathan Hackett, Client Development Director at Cadogan Keelan Westall explains, “We are seeing a growth in under-insurance as the recession continues, because many property owners are failing to have regular valuations. “A recent case highlights the problem. A property owner had to make a claim on a listed block of


insurance of 65 per cent. “To help property owners


flats following fire damage and it was found that whilst the value at risk was £215,495, the value declared for the policy term was £142,000. This represents under


safeguard their assets, we are offering a no-cost valuation check which provides property owners with some initial advice on the property, contents and issues relating to the loss of rent insurance, so that owners can better understand the impact of values should a claim occur.”


Geeta Nanda


said, “Only a few young professionals can obtain mortgages so the only option is to rent. But there is an acute shortage of professionally managed high- quality accommodation available for private rent to young professionals, and this is the gap we aim to fill. Our vision is to create a product and brand associated with excellence that satisfies the requirements of aspirational young professionals. We refer to this group as the ‘rentysomethings’.”


Harry Downes Geeta Nanda, TVHA’s chief


executive, said, “This initiative is a logical extension of a major area of our expertise – managing rental properties, and the financial model makes sense with a forecasted internal rate of return of 15 per cent. This will generate an income to invest in social housing as well as enable us to provide much needed quality homes for young people who would normally be at the mercy of the highly variable standards of the current private rental sector.”


SURVEY


Record levels of tenants


Over 275,000 new tenants registered for private rental accommodation in 2011, a 24 per cent increase on 2010, according to Countrywide. The findings follow an


extensive survey of market trends taken among Countrywide’s network of agencies.


Nearly 80,000 new tenants


registered with Countrywide agents during Q3 2011, with August generating the highest number of enquiries since Countrywide records began. Overall, London saw the


biggest spike in enquiries, with a 35 per cent increase in tenant applications recorded over the course of the year. The Group’s quarterly


research into the private rental sector also confirmed that the demand means that a growing number of rental properties are let before they are even advertised. Those that do make it to market took an average of 13.6 days to be let/ occupied in 2011, a reduction of 1.2 days compared to 2010. While cohabiting couples under the age of 35 continue to make up the largest proportion of new tenants looking to rent (at 23.4 per cent in Q4 2011), a growing number of families are entering the private rental market, an emerging trend which was found to be most evident in the North and South East of the UK. Nick Dunning, Commercial


Director at Countrywide said; “We are in the midst of a rental boom as renting has become the new norm. Despite gradual improvements in property levels, it is not enough to satisfy the ever- increasing levels of demand. With a record number of tenants entering the private rental sector, there is a vast shortage of properties available in all areas of UK, which could potentially fuel a steady rise in rent prices throughout 2012.”


PROPERTYdrum MARCH 2012 47


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