With the demand for more housing in the UK, the cost of living rapidly decreasing the amount of purchasing power, and the generational changes in consumer behaviour; the Private Rented Sector is here to stay.
Howard Kennedy has provided us with a first class legal service for over 25 years. We view Howard Kennedy as not just our lawyers but as an extension of our business as our trusted partners and advisors.
Galliard
We are currently seeing the Private Rented Sector (PRS) scale up. It's a topic on our, and many of our clients', radars whether that's private developers, investors or housing associations.
So why has the market seen an increase in PRS activity over the last 12 months? Firstly, the demand for more housing in the UK requires an upsurge in development and with generational changes in consumer behaviour and the challenge for young people affording to buy, the "generation rent" movement appears to be one which is here to stay.
The increased need for housing in the UK was, and continues to be, an issue which developers (and councils) have at the forefront of their agenda. The government said housing was "a priority" and it had delivered 430,000 affordable homes since 2010 (BBC News). But this figure is nowhere near enough to meet the current demand.
Cities have become saturated and foreign migration isn't showing any signs of slowing down. Despite Brexit and the uncertainty in the property market, the UK (and London in particular) is still attracting people and business. The rising demand, particularly in major cities, is not being met. Supply simply can't keep up with demand. This in turn means that suburban areas are seeing a surge of interest for occupiers, as City workers look for cheaper commuting options and families are looking for places to live.
Our clients are supplying both buy-to-let and build to rent (BTR) housing schemes around the outskirts of London, in particular the South and South East where the cost to buy and rent is significantly cheaper. BTR is however a new disrupter in the market and is challenging the traditional buy-to-let room rental offered by private landlords. The distinction in this product is that the BTR schemes create communities full of amenities, public realm and a sustainable environment which is becoming more important and attractive to people than struggling to buy their own property. The challenge for institutional developers and housing associations is whether the product is affordable to the consumers and educating people on the extra benefits included in this rental cost.
At Howard Kennedy we support our clients with their ambitious objectives in the PRS and BTR to help their businesses deliver more housing across the UK. From co-living and student accommodation to senior living and affordable housing, our experience is broad. We work with private developers and investors as well as housing associations.
Watch now: Key observations in BTR and Multi-Family markets
What opportunities have arisen for investors? Who has shown innovation? What lessons have been learnt from the pandemic? We hosted a panel discussion with Arnall Golden Gregory to explore these opportunities, innovations.
Click play to watch.
The future of BTR, PRS and rooftop housing
What does the future look like for PRS and BTR developments? Is a rise in rooftop development to be expected? Shreena Avery speaks to Built Environment about the impact Covid-19 has had on the Real Estate sector and what the future holds.
Our clients need support on all aspects of their property needs from obtaining planning, to financing and construction. Our full-service real estate offering ensures the most efficient and commercial approach.
Corporate business
Often PRS clients need corporate advice on investment structures and joint venture's as part of their project. We regularly advise on these aspects and make the complex, straightforward.
Employment and immigration
Regulations for contracts of employment are regularly changing. Although not the first thing PRS clients often consider, we can talk you through why it's important to have on the agenda.
Resolving disputes
Disputes between parties can occur at any stage from planning, during construction and through to completion. Our team is experienced in resolving disputes as quickly and amicably as possible.
Sustainable growth
Being sustainable isn't just a tick box exercise. It's the way of the future, and it can be more cost-effective. We encourage our clients to think about the impact of sustainability throughout their project.
Recent Experience
Advising developer client on the acquisition and subsequent sale of land in a thriving UK City, with development obligations to build out c350 bed student accommodation, with complex funding arrangements together with advice relating to energy matters on the connection of the student block to the city-wide district heating network.
Advising Eco-World Ballymore properties on its PRS mixed-use development at London City Island including its connection to a district heating network.
Advising on the JV between Galliard Homes and Catalyst Housing Association on the purchase and sale, development contracts and district energy scheme at this development to develop 604 new homes as part of the redevelopment of the former Wimbledon dog track.
We advised Edward Street Quarter Limited on the site in Brighton, former American Express headquarters, selling and forward funding parts of a mixed-use development to an institutional PRS investor and a registered provider.
Advising Berkeley Homes on the district energy aspects of this Woodberry Down residential development scheme including arrangements with Notting Hill Genesis housing association.
We advised Galliard on the forward-sale and development funding of part of the Royal Mail site to a PRS operator and registered provider including the associated construction and ancillary contracts.
Advising large scale global investor on their ambitious acquisitions including private residential blocks and student accommodation on over £400m of assets in the last 12 months. These include lettings to local authorities and ASTs.
Our Team
Working closely with you, we'll find the best way to get you quickly and easily from where you are to where you want to be.
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