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Hedge Fund Investing In Housing To Rent

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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.

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... 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.

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