The SFP UK Approach
A recognition of the shrinking supply of private rental housing in the UK has led to SFP looking at the Private Rental Sector (PRS) in more detail. Environmental and regulatory legislation is putting the market under pressure and creating new investment opportunities.
As private landlords are selling their investment properties to owner occupiers and extracting rental supply out of the PRS market a unique environment has been created for institutions to invest in Build to Rent (BTR) real estate in order to try and close the supply and demand gap in rental housing.
Strong urban population growth and a large proportion of under 45s in the UK’s major cities is pushing demand up further for high quality rental apartments.
The National Residential Landlords Association have calculated a shortfall of close to 230,000 rental homes a year going forwards. This is a trend that will most effectively be addressed by Institutional BTR schemes.
Sustainable values are key to a successful UK real estate strategy. By 2025 all new tenancies will have to achieve a minimum EPC rating of C. By 2028 existing tenancies will also have to achieve this rating. Currently over 60% are D or worse. Investing in BTR we can be at the forefront of sustainable living. The government is targeting net zero carbon for all new developments by 2025. Sustainable developments have consistently been found to achieve higher occupancy and rents through changing public perceptions around environmental risk. In light of rising energy prices this trend has also become more important as a driver for reducing costs.
Swiss Finance & Property Group’s track record of structuring deals and investment vehicles as well as its status as a FINMA regulated entity puts it in a unique position to raise investment and leverage the debt market for this exciting new international market opportunity.
With a skilled team of real estate professionals and strong local knowledge, Swiss Finance & Property UK is not only able to provide the group with on the ground information and analysis, but also give expert advice on investment opportunities.
Through a diversified, risk managed approach we can offer clients exposure to the highly attractive UK market in a way that is consistent with the diligent service orientated approach that has been the bedrock of SFP’s success for the past 20 years.