Operating assets are the buzz phrase in real estate alternatives, yet investors have become increasingly comfortable with the reputational risk that comes with owning assets that are intrinsically linked with people’s lives.
One of London’s popular locations for housebuilding saw a startlingly low number of private sale construction starts in the first quarter of 2019. In Zone 2 just outside central London, only 77 new homes got under way, according to research by Molior London. That’s 97% lower than the 2015 peak quarterly average and represents a drop in the ocean in plugging London’s acute housing shortage.
Recently, I received in my inbox a portfolio of three assets offered for investment, comprising a couple of thousand units, set to reach practical completion next year.
The build-to-rent (BTR) sector continues to grow strongly, backed by government support and housing need.
The build-to-rent (BTR) sector is now firmly on the UK’s housing map, backed by cross-party political support.
The target set in the Budget to build 300,000 homes is ambitious, considering efforts to date have been largely unsuccessful in tackling the housing supply/demand imbalance.
The housing market remained resilient after the EU referendum, but is now showing signs of moderation. The slowdown in house price inflation, mortgage approvals and transaction volumes has started to gather pace since the start of the year.
Following the general election, there is yet again uncertainty surrounding the politics of the UK housing market. The housing minister has changed, with Gavin Barwell losing his seat, replaced by Alok Sharma.
In a 12-month period that has brought us not just Brexit but also US president Donald Trump, the government’s housing white paper was never going to set the media world alight.
The use of therapeutic use exemptions may have cast a pall over British cycling recently, but the ‘marginal gains’ policy pioneered by Sir David Brailsford and Team Sky still holds: sweating the small stuff can pay big.
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