Build-To-Rent Gathers Momentum

Several factors have increased the attractions for institutions of becoming landlords, not least of which is the paltry return offered on traditionally safe investments. The trouble is that pension funds may be very good at investing your money and keeping it safe, but they’re not very experienced when it comes to building homes. But as necessity is the mother of invention, suitable conduits are now being established that circumvent the problem. Institutions are now working in partnership with local authorities, housing associations and even housebuilders as a means of bringing about a system whereby a pension fund can realistically look at achieving a return on its investment of 3 to 5 per cent. Read more on the Investors’ Chronicle website.

Residential Rent Gains Expected To Slow

Mortgage rates are falling, capital values are rising, and in the past five years residential rents have outstripped consumer price inflation by 3.6 per cent. Much of that increase has come in the past year, with rents up by 3.7 per cent, the fastest pace for two years. It's important to remember, though, that this embraces considerable regional variations. Rents in the east of England, for example, grew by an annual 12 per cent, even outstripping London, while rents in the East Midlands actually fell by 0.2 per cent. But a recent survey by Your Move, and letting agents network Reeds Rains, suggests that landlords expect rent inflation to tail off to 1.7 per cent by next year. Read more on the Investors Chronicle website.