3.6 million households now privately renting

Transcription

1

2 Private Rented Sector 3.6 million households now privately renting The Montague Review. The Private Rented Sector is a stable, well established and growing investment class with improving net income Generation Rent: A snapshot The number of households in the Private Rented Sector (PRS) has grown nearly 50% in five years while the number of owner-occupiers has declined Typical rental stay is 2 and a half years* and shows no signs of subsiding Competition between potential tenants for rental properties is high, particularly near large employment centres, which is pushing up achievable rents 88% of landlords achieve at least their asking rent* The residential sector offers investors an asset backed investment with an income stream supported by strong demand and earnings growth. Paul Winstanley, Partner, Allsop LLP *According to The Rent Check Issue 3 May 2014, by Allsop and BDRC Continental.

3 Residential asset management has evolved The Build to Rent opportunity IT advances have enabled efficient management of large scale portfolios whether at a local or national level Portfolio performance can be evidenced and analysed through regular and targeted benchmarking with sophisticated data analysis and portfolio management processes offering a dynamic solution The RICS and other relevant industry bodies provide qualified and trained people in a regulated environment Accessing established, independent and transparent asset management professionals can minimise reputational risk The treatment of residents as customers is now essential and protects reputation and net income streams Within the Private Rented Sector (PRS), Build to Rent represents a new, high quality and efficient residential asset class of scale and a major opportunity for investors with in-built efficiencies not possible within dispersed portfolios or small flatted buildings. The case for Build to Rent is strong, backed by Government through housing policy and the implementation of the PRS Task Force. With increasing requirements for rental properties across the UK, the existing buy-to-let sector does not have the capacity to meet demand. Major, purpose-built rental investments will provide a solution. We have helped to shape PRS / Build to Rent policy through industry professional bodies. We previously researched and co-wrote Invest to Rent with London Councils and the BPF, looking at the potential growth of the sector in London, and designed the BPF Private Rental Sector Initiative investment model. We are working with large-scale investors to take advantage of the strong investment potential offered through Build to Rent - the most dynamic sector in housing today.

4 Our Build to Rent service Management and ARIM Allsop, together with ARIM (Allsop Residential Investment Management), has formed a specialist Build to Rent team to provide the latest market knowledge and a real understanding of large-scale, purpose-built assets. This team combines and builds on our existing understanding and experience of the PRS, while offering a fresh, innovative and strategic approach. For large scale assets, value to investors will rely as much in the way they are strategically run as businesses, as it will in the underlying property value and locational characteristics. ARIM provides a one stop shop from rent collection to tenancy and block management through to asset management, exit planning and execution - fulfilling clients individual requirements and strategies, and maintaining a real focus on the gross to net. Valuations Consultancy We offer consultancy services to new and existing clients for site specific appraisal purposes to include asset management assessments, market research and land appraisals for Build to Rent purposes. We can provide client education through a continuing programme of information gathering meetings and Allsop services demonstration. Our recent consultancy work has included the appraisal of a number of residential development sites and existing properties eligible for residential conversion under permitted development rights legislation, where a long term rental opportunity is being considered. Specifically, we are able to offer advice on: Location Tenant profile and demand Product characteristics Creating a community and appropriate use of communal facilities A forward thinking asset and property management programme Allsop is a leading advisor in all aspects of residential valuation with a team of 80 valuers based throughout the UK. Specifically, we have experience valuing sites where Build to Rent use is proposed for loan security purposes. Agency Allsop has long been a leading advisor in all aspects of the residential investment market, but when it comes to the acquisition and disposal of portfolios it is regarded, justifiably, as among the very best. The residential development team regularly deals with a range of assets including land or buildings with or without planning consent, partially complete development sites and existing commercial & residential buildings with untapped development potential. We are perfectly placed to advise investors, developers, landowners and funds on all aspects of Build to Rent opportunities throughout the UK, assisting to maximise returns, manage risk and support long-term investment for our clients.

5 About Allsop About ARIM Allsop Residential Investment Management Allsop is an independent property consultancy with a market-leading reputation for high quality service and integrity, covering the UK from our offices in the West End, the City and in Leeds. In addition to our position as the UK s largest and most successful property auction house, we also offer an extensive range of services for residential, commercial and mixed use property. More than 30 years track record as a specialist advisor to major investors in the Private Rented Sector. In 2013/2014 Allsop delivered: 250m worth of transactions by our Investment and Development Agency teams. Investment clients include British Land, CEG, Co-op, Grainger plc, Lloyds Banking Group, Quintain plc and Wellcome Trust. Development clients include Canada Life, Crest Nicholson, LaSalle Investment Management, L&Q and Stonegate Homes. In excess of 2.25bn of PRS stock valued by our Valuation team. These PRS units were valued for a wide range of investor and lender clients, including Annington Rentals, Aviva Investors, CBRE Global Investors, Grainger plc, M&G, Moorfield Group, ReAssure and a wide range of lenders. 716m raised by our Auction teams, 337m of which was raised selling 1,554 residential lots. Clients include Dorrington, Grainger plc, Hyde Housing Association, L&Q, Ministry of Justice, Mountview Estates plc, Network Rail, NHS Property Services, Peabody, Telereal Trillium, The Treasury Solicitors Office, The London Boroughs of Camden, Hammersmith & Fulham and Harrow, plus high street banks and building societies. ARIM is a wholly owned subsidiary of Allsop, providing management and investment services to the residential investment market and Private Rented Sector. The largest independent residential investment manager, ARIM has offices in Brighton, London, Leeds and Glasgow. ARIM has experience and extensive knowledge of the management requirements which differentiate Build to Rent schemes from the existing Private Rented Sector. Build to Rent investments need to be driven by thoughtful design, community and above all the ability to deliver superior customer service to achieve management efficiencies and strong investment returns. ARIM is familiar with the functionality of multi-family in the US and has contributed to the ULI Best Practice Design Guide for Build to Rent. More experience in managing residential investment portfolios of scale than any other manager. In 2013/2014 ARIM managed: In excess of 10,000 units across the UK mainland. Investor clients include Dorrington, Grainger plc, Guy s & St Thomas, RBS/West Register, Realstar and William Pears Group.

6 Full circle property solutions Build to Rent contacts Residential Valuations Paul Winstanley Partner paul.winstanley@allsop.co.uk Beth Hill Senior Surveyor beth.hill@allsop.co.uk Rob Austen Partner rob.austen@allsop.co.uk Build to Rent Residential Investment Management Max Fahie Senior Surveyor max.fahie@allsop.co.uk Hazel Sharp Business Development Director hazelsharp@arim.co.uk Andy Jones Managing Director andyjones@arim.co.uk Residential Investment & Development Christopher Wilson Partner christopher.wilson@allsop.co.uk Adam Kerven Associate adam.kerven@allsop.co.uk James Wilson Associate james.wilson@allsop.co.uk We have an exceptional team with the skills, experience and ambition to maximise value for our clients delivered in our own distinctive open, friendly and honest style. With more than one hundred years of outstanding market knowledge, insight and track record, we are proud that our clients stay with us for the long-term.

7 Services Affordable Housing Auctions Business Rates Development Agency & Advisory Insolvency Investment (Sales & Acquisition) Lease Consultancy Office Leasing (Central London) Head office: 33 Wigmore Street, London W1U 1BZ Tel: +44 (0) City office: 2 Copthall Avenue, London EC2R 7DA Tel: +44 (0) Leeds office: 33 Park Place, Leeds LS1 2RY Tel: +44 (0) Private Rented Sector & Build to Rent Residential Management (ARIM) Valuation Glasgow office: James Sellars House, 144 West George Street, Glasgow G2 2HG Tel: +44 (0) Brighton office: Princes House, Queens Road, Brighton BN1 3XB Tel: +44 (0) London office: 33 Wigmore Street, London W1U 1BZ Tel: +44 (0)