industry news
Booming private rented sector attracts HAs to the market
to grow at faster levels than social rent or home ownership.
S
“Social landlords across the country are linking with developers and new investors to diversify their product and earn higher incomes from market rent schemes. But it is also clear some properties will only be retained for relatively short timescales before being sold outright, if sales appear more profitable”
Social landlords across the country are linking
with developers and new investors to diversify their product and earn higher incomes from market rent schemes. But it is also clear some properties will only be retained for relatively short timescales before being sold outright, if sales appear
everal leading housing associations have sign-posted significant moves into the private rented sector, which is continuing
more profitable. In the north west, One Manchester has
appointed Keepmoat to build 172 homes for market rent in the south of the city, in their first venture into the private sector. Two separate schemes will provide 67 two bedroom flats and 105 two and three bedroom homes. Dave Power, chief executive of One
Manchester, said: “All the revenue generated will be reinvested into our work in the local area and our communities.”
Busy market
In London, Network Housing Group has entered into a joint venture with property developer Stanhope to build private rented housing at sites across the capital. Sites will be jointly purchased and developed as
mid-market rental schemes, with Network providing management and maintenance services. Sites in Westminster, Brent and Harrow are currently being considered. Vicky Savage, Executive Development Director
at Network, said: “In our view London has a long-term unmet need for reasonably priced, well managed rented housing. We are delighted to be working with market leaders Stanhope and look forward to many projects over many years.” Elsewhere in London, Essential Living a private rented sector landlord has completed its first deal
with Peabody, selling them 45 homes on one of its schemes alongside the 104 homes built specifically for private rent. Essential Living hopes to eventually develop 5,000 homes for long-term rent. Dale Meredith, Executive Director of
Development and Sales at Peabody, said: “We are delighted to partner with Essential Living on this landmark deal, which will provide much needed new affordable homes for Londoners.”
Re-entry
Buoyed by all of this activity, Affinity Sutton has decided to restart its development of market rent schemes, some two years after leaving the sector. The landlord already owns 800 PRS homes and now plans to grow this to about 2,000. Kerry Kyriacou, Group Director of New Business
and Development at Affinity Sutton, said “Building up a PRS portfolio gives us the ability to hold an asset which we might do something with later, either sell or convert to social rent.” Affinity Sutton intends to rebalance its
development of affordable housing with other tenures, by cutting the former back from around 90 per cent of its new output to around 60 per cent with the remainder for market sale and PRS. Developments are planned in Manchester, Leeds and the West Midlands.
8 | HMM March 2016 |
www.housingmmonline.co.uk
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