Sky high property prices and tougher lending criteria have resulted in far fewer young people being able to get onto the property ladder, even with government initiatives like Help to Buy. This, combined with a changing demographic of younger people wanting to rent in big cities, where careers and social life can be found, rather than buying further out and facing long commutes, has resulted in an increasing demand for Private Rental Sector (PRS) properties in major cities.
This demand has caught the eye of asset managers, pension funds and investors who see the potential for a product that can deliver a steady income in this current low-yield environment and has resulted in the rapid expansion of a new asset class “Build to Rent”. London alone is reported by the British Property Federation to have 39,000 Build to Rent homes either completed or in the planning stages.
As with any new product, investors and lenders are cautious and have been seeking the advice of calfordseaden to provide due diligence and development monitoring services as they embark on this new and exciting journey.
In the last six months alone calfordseaden has been appointed to provide due diligence advice and monitoring services for the construction of bespoke Build to Rent homes with a construction value of over £250m, providing a range of services that include:
- Developer and contractor due diligence
- Construction contract evaluation
- Assessment of the professional team appointments
- Construction cost benchmarking
- Programme interrogation and monitoring
- Evaluation of Statutory consents and approvals
- Site progress and quality monitoring
- Verification of expenditure and approval of financial drawdowns
For more information please speak to Gareth Alexander, Partner, on 020 7940 3200 or firstname.lastname@example.org