Smaller Buy-to-Let Landlords Face Further Pressure from Big Boys
2017 is a quarter gone and already landlords, particularly those who have invested in buy-to-let property, find themselves under more intense pressure than ever.
Let’s set aside for the moment the terrible damage done to the sector by successive Budgets, because the negative impact of George Osborne’s measures have already started to bite.
Back in January, we warned of the impending spread of build-to-let projects.
At that time, there were four initiatives on the go in Scotland.
There is now about to be a fifth.
A £200 million development which includes plans to build 525 homes for rent in the centre of Edinburgh was announced last month.
And because of Government backing for such schemes, there are fears the smaller landlord will be squeezed by the big boys.
If you’re worried about the future value of your property portfolio, we’d might be able to ease your fears.
R&T Property Solutions is a 60-year-old property investment company based in Glasgow with a strong track record of delivering fair and fast decisions.
We are happy to buy properties across the whole of Scotland with regulated tenants and can often pay cash if a quick sale is required.
Our code of ethics ensures tenants are not disrupted during the sale.
Highly-trained staff based in our Glasgow HQ will provide impartial advice, which in the past has resulted in a seller receiving more than expected.
We take a long-term view of property and are not put off by what we see are short term fluctuations.
Consequently, we would be very interested to hear from you if you feel the time is now right to leave the buy-to-let market.
Unlike a traditional landlord’s premises, the Fountainbridge project in Edinburgh will also include shops, bars and restaurants.
Tenants will be able to enjoy an on-site fitness suite, communal lounges, BBQ area and roof terraces with views of Edinburgh Castle.
In addition, the complex’s fully managed gardens will include a new public square.
The work is expected to start at the end of this year. The first phase should be completed in two years and the centre is expected to be fully operational within five years.
Fountainbridge has all the hallmarks of a typical build-to-let programme.
And it is one with which a traditional buy-to-let landlord cannot compete.
This is a big project with serious investment by several heavy hitters.
Moda Living, with joint venture partner Apache Capital, bought the site ‘off-market’ from Grosvenor Britain &Ireland.
They will design, build, and manage the build-to-rent homes for the long term alongside the existing homes under the Moda brand. The venture also includes the purchase of 46 homes.
The deal secures the main residential component in the Fountainbridge regeneration, which is helping revitalise central Edinburgh.
T whole complex will include 25,000 sq. ft. of new commercial space for shops, bars and restaurants.
The site already comprises 250 completed homes, including homes for sale, affordable housing for the frail and elderly, serviced apartments, two student residences providing accommodation for over 600 students, and 46 private rented homes.
The scheme will be Moda & Apache’s second in Scotland, having purchased the former Strathclyde Police headquarters in Glasgow in October last year, with a view to deliver the city’s first homes purpose-built for rent.
The £115m redevelopment will see the complex transformed into 400 apartments coupled with on-site amenity areas and new commercial space.
The JV is pushing ahead with delivery of its portfolio across the UK, its flagship £155m scheme Angel Gardens, Manchester started on-site in January. It was granted planning for their £85m Liverpool waterfront development, The Lexington, in September last year. Plans for a £172m scheme on Broad Street, Birmingham have also been announced.
Gerry More, the Scottish Government’s private rented sector champion, said: “This kind of purpose-built, high-quality and professionally-managed PRS development can rapidly increase the provision of much-needed new build housing, while at the same time positively transforming the experience of rented accommodation in Scotland for the long-term.”
However, there are other major projects on the go which will increase the number of rented properties available.
Cala Homes has submitted detailed plans for 400 homes on the 31-acre site of the former Jordanhill Campus.
Central to the proposal is the retention of the university’s Category B-listed David Stow building, which will be refurbished to provide apartments.
Graham House and Douglas House, which do not have listed status, are also to be conserved and converted under the plans.
The plans will enhance the existing landscape and create new public access to parkland located within the site.
More than 40% of the proposed development will be retained as greenspace. Playing fields and acres of ancient woodland will be protected
Across Glasgow 350 homes costing £6.4 million will be built in Govanhill.
More than 600 flats are set to be built in the Merchant City.
Planners have recommended a seven-storey student accommodation complex adjoining the Glasgow School of Art.
If you believe these new properties will impact negatively on your investment, then call us today.