Build to Rent Beating Brexit Uncertainty
Since news broke to the world of the UK’s choice to Brexit, a cloud of uncertainty fell over all markets. Finances plummeted in the wake of the decision and slowed any movement within the Property Sector. That all appears to be changing now however, with one of the biggest players within the Build to Rent sector saying the new segment of the lettings market is likely to ride out any uncertainty and continue to thrive.
Legal & General’s Build to Rent fund manager Dan Betterton said that while Brexit may lead to people putting off large-scale personal decisions such as house-buying, they will still need somewhere to live – allowing the rental sector in general to still benefit.
“Anecdotally, following the referendum, we are hearing demand from more people wanting to rent and not wanting to buy. When we look round the world to established build to rent markets, such as the US, the rental sector provides consistent demand to the construction industry regardless of market conditions – it is less cyclical than building for sale” insists Batterton in an interview in Architects’ Journal.
He says there may also be less competition for land between now and the end of the year as traditional housebuilders pause land acquisition programmes, allowing Build to Rent investors to make their move.
“The one downside is that a falling pound means construction materials purchased overseas become more expensive – a lot of cladding comes from abroad. But other overseas investors are seeing the exchange rate as an investment opportunity” he says.
As Build to Rent increasingly becomes the way forward, ensuring any investment is protected is key. SLC Solicitors offer a unique and innovative model that can ensure any arrears accumulated within the Build to Rent market are recovered. We recognise the very specific challenges presented by the Private Rented Sector, and our tailored PRS legal service supports clients in all aspects of their letting and management operations.
Faye Craggs, Head of PRS Services at SLC Solicitors, says “Managing voids and bad debts has been identified as a crucial component of ensuring financial performance. Our model provides solutions for arrears management, write offs and legal fees while fulfilling the optimisation of spending criteria with a low cost/high yield platform. We will match your brand ethos and values from the start creating the desirable synergies and delivering an end product synonymous with your brand qualities and customer expectations.”