Coming soon to the UK: Mass produced rental housing

July 28th, 2009 by tom | Filed under Daily News, Debt, Loans, Mortgages, Recession.

financial news

It’s a well known fact, that for the good or the bad, what- ever the new trend that emanates from the United States eventually makes it to our shores. And the next best thing making its way to us low cost, privately owned rental housing. And it may be just what the British home seeker is looking for. Despite the fact that property prices have dropped by around 15% in the last two years, for many couples the hope of ever owning a property of their own is looking increasingly remote. Also many of the baby boomers who are interested in down- sizing are afraid to do so because they cannot guarantee themselves that they will find a suitable property to replace the one that they may be selling.

In the US these have become common problems, and are being dealt with through the launch of rental homes projects that are of a high standard , can be produced relatively cheaply through utilizing the most modern methods of mass production.

The projects are rising throughout the US as a result of the Obama government’s call for greater institutional investment in the residential market.

One of the first bodies to rise to the call were the Aviva insurance group, who are about to launch an investment fund , funded by up to £1 billion to construct build to rent residential property. The property management will be handled in partnership with CB Richard Ellis, a well known international property consultancy firm who are currently very active in similar projects in the UK as well as the US.

Already one venture in the UK is under scrutiny by the partners. The plan is to build 100 units in residential blocks, which will be situated in a yet to be named town in the south-east England. All that is known is the units will be situated near the large transport centers in an area where property prices are particularly high.