Jump to content
House Price Crash Forum
Sign in to follow this  
Nabby81

Hedge Fund Investing In Housing To Rent

Recommended Posts

http://www.lutontoday.co.uk/news/business/business-news/hedge-fund-s-plans-for-low-rent-homes-in-luton-worth-60m-for-the-town-1-7262291

However Cheyne is looking to build 400 homes on the site – 20% of which will be available on affordable rent and the remainder will be set on rents linked to local housing allowance levels.

Should planning permission be obtained Luton Borough Council will manage the homes and will have full nomination rights over who is allocated to live in them.

This agreement between Cheyne and LBC will initially last 20 years, but could be extended far beyond this.

In return Cheyne is expected to take an annual yield of around 3%.

LBC’s housing portfolio holder, Cllr Tom Shaw, told the Luton News that the scheme will cut the amount of people on the council’s mammoth waiting list for housing.

Cllr Shaw said: “They (Cheyne) are not interested in making a quick buck and what they are looking for is long termINVESTMENTSarrow-10x10.png.

“The full application should be going to the planning committee in July, the target is to get started on work on the site in August.”

Terms of the deal will allow the council to circumvent the government’s Right to Buy scheme, Cllr Shaw added.

Share this post


Link to post
Share on other sites

... will be set on rents linked to local housing allowance levels.

... but local housing allowance levels are set by ... well, if there's a sufficiently dominant player in the market ...

In terms of housing people, this should be a Good Thing. It'll only work for the investors if they're sufficiently desirable to be in demand, and that'll in turn put competitive pressure on other nearby landlords.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   33 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.