The latest research by Birmingham and Newcastle-based property developer, StripeHomes, has examined where in England buy-to-let landlords can achieve the best rent yields, discovering that the North provides the most valuable investment opportunities. The buy-to-let industry has endured some tough times in the last couple of years. Not only has
A Grade II listed Georgian family home, The Old Bakehouse, is for sale for the first time in over 50 years. Located in the picturesque village of Flintham in Nottinghamshire, The Old Bakehouse is one of the most characteristic and historic buildings in the village, which is within a protected
The latest research from Warwick Estates shows that leasehold homes are playing an increasingly significant role in the UK housing market after enjoying significant growth in the past couple of years. There is an increasingly common narrative around the housing market that leaseholds should be a thing of the past.
The latest research by nationwide Buy-to-Let specialist, Sequre Property Investment, estimates that the current bricks and mortar value of the UK’s private rental sector sits at almost £1.4trillion pounds Sequre Property Investment compiled data on the number of current private rented dwellings across England, Wales, Scotland and Northern Ireland, before
Unbranded Finance, the UK non-bank lender set up in 2020, with offices in Edinburgh and London, today announced that it has completed on its largest, and most complex, loan to date. In partnership with Westbrook Partners, the fully integrated global real estate investment management company, the two-year £36 million facility
Founder and CEO of GetAgent.co.uk, Colby Short, commented: “Properties are going under offer at an alarming pace at the moment and buyers continue to swarm the market despite the dwindling hopes of a stamp duty reprieve. There also remains a severe shortage of stock to meet this demand and so
For investors looking to add another property to their portfolio this year, there are plenty of options to weigh up as the market remains buoyant, with one Nottingham riverside development offering an exclusive incentive to those looking to reserve a waterfront apartment by the end of July. The developers behind
The majority of homeowners in England remain unconcerned about a stamp duty holiday deadline dip in house prices, although a third would be deterred from selling should one materialise. That’s according to research from the homebuying platform, YesHomebuyers, who found that 83% were unphased about a potential cool in house
Research from Build to Rent specialists, Ascend Properties, has revealed which areas of the English rental market have performed the strongest since the 2008/09 recession where the growth in average rental income is concerned. Ascend analysed rental market values during the last property market crash and found that the average
tado° has announced a new investment of €38 million (USD 46 million), raised from noventic and existing shareholders. tado° and noventic will enter a strategic partnership to develop and distribute new energy-efficient proptech solutions for the commercial housing market. The investment will also be used to drive technologies for sustainable heat generation, OEM
The latest research by Birmingham and Newcastle-based property developer, StripeHomes, has examined where in England buy-to-let landlords can achieve the best rent yields, discovering that the North provides the most valuable investment opportunities. The buy-to-let industry has endured some tough times in the last couple of years. Not only has COVID-19 profoundly affected the reliability of rental income, but changes to regulations and tax rules have also made it more difficult for landlords to maintain a good level of profit from their investments. Proposed changes to Capital Gains Tax allowances were threatening to make the situation even harder, but now that this has been put on the backburner, landlords can finally start looking forward and thinking about how best to grow their rental portfolios. When doing so, rent yields are the most important statistic to examine, so StripeHomes has analysed all of the available data to provide a list of England’s best locations for high-yield buy-to-let returns. By Region On a broad regional level, the best buy-to-let yields can be found in the North East. Of course, the North East region is huge and so research when investing should always be undertaken at a more granular level. However, the region as a whole is currently home to an average house price of £144,032 and an average rent value of £566 per month, the rental yield is 4.7%, well above the national average of 3.9%. Second on the list is Yorkshire & Humber, where the average house price is £179,408 and the average rent is £631 per month, delivering a good yield of 4.2%. The third-most profitable buy-to-let region is the North West with an average yield of 4.2%, followed by London – the first location not found in England’s North – where high house prices are matched by high rent values to create a yield of just under 4%. Rounding off the top five is the West Midlands, where an average house price of £216,973 meets an average rent value of £697 per month to create a yield of 3.9%. By Local Authority This yield analysis can also be narrowed down to examine individual towns and cities, which shows that the very best rental yields for buy-to-let landlords in England are found in Newcastle-upon-Tyne. With an average house price of £177,821 and average monthly rent of £844, the city offers an average yield of 5.7%. Blackpool is close behind with an average house price of £116,939 and an average rent of £540 per month creating a yield of 5.5%. Stoke-on-Trent also boasts yields of 5.5%, while Burnley in Lancashire and Knowsley in Merseyside both offer yields of 5.4%. It’s clear from this data that the best rent yields in England are currently found in the North, demonstrated by the fact that 16 of the country’s top 20 yield locations are found north of Nottingham. Managing Director of StripeHomes, James Forrester, commented: “It’s great to see a number of areas presenting strong yields to buy-to-let investors despite the government’s best efforts to reduce profit margins in an attempt to disincentivise landlords and free up housing stock for general homebuyers. As the backbone of the rental market, the buy-to-let sector plays an incredibly important role in providing many with a place to live, but we simply can’t expect the nation’s landlords to provide this service at a loss. However, the year ahead looks positive and with travel restrictions lifting, a return to face to face teaching at universities as well as a return to the physical workplace, increasing demand should help boost many areas of the market.” Table shows the current average yield in each region of England Location AveHP – April 2021 Average rent pm – March 2021 Rental yield North East £144,032 £566 4.72% Yorkshire and The Humber £179,408 £631 4.22% North West £183,299 £636 4.16% London £491,687 £1,623 3.96% West Midlands Region £216,973 £697 3.85% East Midlands £213,308 £660 3.71% South West £279,951 £840 3.60% South East £341,358 £999 3.51% East of England £313,964 £889 3.40% England £268,380 £864 3.86% Sources Gov.uk – UK House Price Index Office for National Statistics – Private Rental Market Summary Table shows the areas of England with the highest average rental yield at present Location AveHP – April 2021 Average rent pm – March 2021 Rental yield Newcastle upon Tyne £177,821 £844 5.70% Blackpool £116,939 £540 5.54% Stoke-on-Trent £120,043 £547 5.47% Burnley £105,618 £477 5.42% Knowsley £142,030 £641 5.42% Hyndburn £107,148 £482 5.40% Sunderland £126,520 £541 5.13% County Durham £117,576 £502 5.12% Barrow-in-Furness £131,544 £560 5.11% Salford £182,091 £770 5.07% Manchester £203,169 £838 4.95% Pendle £120,840 £498 4.95% Newham £382,016 £1,536 4.82% Blackburn with Darwen £127,154 £511 4.82% City of Nottingham £172,540 £682 4.74% Preston £143,743 £568 4.74% Barking and Dagenham £312,288 £1,226 4.71% Middlesbrough £125,115 £490 4.70% Stockton-on-Tees £146,819 £573 4.68% City of Bristol £306,482 £1,196 4.68% Sources Gov.uk – UK House Price Index Office for National Statistics – Private Rental Market Summary
A Grade II listed Georgian family home, The Old Bakehouse, is for sale for the first time in over 50 years. Located in the picturesque village of Flintham in Nottinghamshire, The Old Bakehouse is one of the most characteristic and historic buildings in the village, which is within a protected conservation area. On the market with selling agent FHP Living, the six-bedroom country property has been in the same family since it last came to the market and the beautiful house, maintained gardens and substantial outbuildings, offer a rare opportunity to create a magnificent family home in one of Nottinghamshire’s most desirable villages. The accommodation is extensive, with a dining kitchen and four well-proportioned reception rooms on the ground floor. This living space includes a kitchen, dining rooms, a snug, beamed family living room and an Amdega conservatory. There is a cellar and wine cellar, on the first floor are four doubled bedrooms, one with an ensuite, a family bathroom and separate WC. Two further double bedrooms are on the second floor. The Grade II home stands in a half-acre plot with carefully created cottage gardens, manicured lawns, feature topiary and outbuildings that include a double garage – accessed by a Yorkstone patio and pebbled driveway, barns and a garden store, all in keeping with the age of the property. There is also a seven-acre wildflower paddock which can be purchased by separate negotiation. “From the stunning look of the property with its traditional Georgian architecture, rambling roses, manicured lawns and large living spaces, there isn’t anything more you could desire from this incredible family home,” said selling agent Jules Hunt, director at FHP Living. “The love and care invested in this historic gem is obvious and you can really appreciate why a family has kept their much-loved home for so long. The property is beautifully proportioned with beams and airy rooms and the pretty gardens are the perfect setting for family get togethers. This is a really special property and being located in such a lovely and well-placed village, make it the ideal family home.” Flintham has largely remained the same since the Georgian era with Main Street showcasing traditional red brick pan tile properties. The village has a primary school, community cricket club and a pub. Newark Northgate Station is 8.2 miles away from The Old Bakehouse, with a train travel time into London of 1 hour 20 minutes and central Nottingham is 17 miles.
The latest research from Warwick Estates shows that leasehold homes are playing an increasingly significant role in the UK housing market after enjoying significant growth in the past couple of years. There is an increasingly common narrative around the housing market that leaseholds should be a thing of the past. This argument often starts by saying leaseholds don’t give owners sufficient freedom and protection in their homes. But, from analysing the past five years of the UK leasehold market in the private sector, it’s clear that they aren’t going anywhere. In fact, they’re growing in prominence. The industry analysis by Warwick Estates shows that In 2015/16, leaseholds accounted for 20.8% of the private housing market. In 2017, this had slumped to an all-time low market share of 20.3% and it looked as though leaseholds were quickly becoming the least desirable form of homeownership. But the slump didn’t last long. In 2018/19, the leasehold sector’s market share increased to 21.1%, with the total number of leasehold dwellings increasing by 5.3% from just over 4 million to more than 4.2 million. This growth continued into 2019/20, with leaseholds now accounting for 21.6% of all private dwellings, having increased by 3.4% annually. So the idea that leasehold ownership is falling out of favour seems to be incorrect. Instead, after a few years of strife from 2015-2018, leaseholds are on the rise having risen by 8.15% across the five-year period examined in the data. COO of Warwick Estates, Bethan Griffiths, commented: “Leasehold prominence in the UK housing market is on the up and this should come as no surprise as the sector provides a vital service to many. Those who argue leaseholds are increasingly defunct fail to consider how essential they are for the housing market, for the economy, and for buyers. “Take a walk around any city; there are new developments and high rise flats going up everywhere. Those that are destined to be sold will be done so with leaseholds. For as long as people want to live in urban areas and in flats, leaseholds will provide the ability to secure and maintain this lifestyle choice. “That’s not to say leaseholds don’t come with challenges, but with intelligent and communication-focused management that caters to landlords and leaseholders alike, these challenges can be mitigated and nullified.“ Leasehold dwellings across the private sector (owner occupied and private rented sector) Period Leasehold dwellings as % of stock Change (%) TOTAL – number of leasehold dwellings Change (n) Annual Change (%) Change – 2015/16 to 2019/20 (%) 2019-20 21.6% 0.5% 4,378,000 146,000 3.4% 8.15% 2018-19 21.1% 0.8% 4,232,000 212,000 5.3% 2017-18 20.3% -0.2% 4,020,000 -1,000 0.0% 2016-17 20.5% -0.3% 4,021,000 -27,000 -0.7% 2015-16 20.8% – 4,048,000 – – Data sourced from Gov.uk – Leasehold Dwellings
The latest research by nationwide Buy-to-Let specialist, Sequre Property Investment, estimates that the current bricks and mortar value of the UK’s private rental sector sits at almost £1.4trillion pounds Sequre Property Investment compiled data on the number of current private rented dwellings across England, Wales, Scotland and Northern Ireland, before looking at the total value of these rental portfolios based on current property values. There are an estimated 5.5m privately rented homes across the UK, accounting for 19% of the entire property market. With the current average UK house price now at a giddy £254,624, this puts the PRS bricks and mortar value as high as £1.4trn. England is home to by far the largest private rental market with 4.8m homes within the sector. This places the total value of the English rental market at £1.3trn based on the current average house price of £271,434. London accounts for a notable 40% of this total market value, with the 1,042,000 rental homes located in the capital valued at nearly £519bn alone. The South East (£234bn) and the East of England (£154bn) are also home to some of the most valuable rental markets, with rental stock in each region estimated to be worth more than £150bn. Outside of England, Scotland ranks as the second most valuable rental market from a property standpoint, with the 371,000 privately rented homes worth nearly £64bn on the market today. In Wales, this current rental market value stands just shy of £38bn, with the Northern Irish private rental market valued at nearly £18bn. Sales Director at Sequre Property Investment, Daniel Jackson, commented: “The private rental market is the backbone of the UK housing sector and plays an incredibly important role in providing homes for those that are unable to overcome the financial hurdles associated with homeownership. Despite this, we’ve seen a number of legislative changes implemented to deter landlords from the sector by a government that clearly has no idea what they are doing. While it may only account for 19% of the total market, reducing the size of the sector would leave many struggling to find an alternative option with regard to their living arrangements.” Table shows the estimated worth of the dwellings within the private rental sector based on the number of dwellings and the current market value of a home in each nation or region. Location All dwellings Private rented Private rented as a % of all Average Property Value Total est value United Kingdom 29,559,777 5,493,830 18.6% £254,624 £1,398,860,363,632 England 24,658,000 4,799,000 19.5% £271,434 £1,302,611,145,489 Scotland 2,650,000 371,000 14.0% £171,448 £63,607,184,256 Wales 1,437,567 204,955 14.3% £184,297 £37,772,604,137 Northern Ireland 814,210 118,875 14.6% £149,178 £17,733,512,868 London 3,634,000 1,042,000 28.7% £497,948 £518,861,773,174 South East 3,985,000 670,000 16.8% £350,016 £234,510,389,824 East of England 2,733,000 497,000 18.2% £310,200 £154,169,527,431 South West 2,604,000 506,000 19.4% £277,603 £140,466,965,340 North West 3,334,000 556,000 16.7% £189,245 £105,220,424,552 West Midlands region 2,537,000 451,000 17.8% £219,793 £99,126,788,132 Yorkshire and the Humber 2,461,000 482,000 19.6% £181,856 £87,654,406,816 East Midlands 2,124,000 391,000 18.4% £216,077 £84,486,121,936 North East 1,246,000 203,000 16.3% £143,129 £29,055,143,233 Average house prices souced from the Gov.uk – UK house Price Index (May 2021 – latest available) Dwellings stock and tenure sourced from Gov.uk, Gov.wales, NRS Scotland and Gov.scot, NISRA and finance-NI-gov.uk
Unbranded Finance, the UK non-bank lender set up in 2020, with offices in Edinburgh and London, today announced that it has completed on its largest, and most complex, loan to date. In partnership with Westbrook Partners, the fully integrated global real estate investment management company, the two-year £36 million facility was provided to an affiliate of London-based private real estate investment and development company, Boultbee LDN, to refinance The Maltings Shopping Centre in St Albans. The loan was advanced within six weeks from agreement of terms and commencement of due diligence. Andrew Smith, Co-founder of Unbranded Finance, commented: “It was a pleasure to work with the team at Boultbee LDN on this transaction, which was completed within the timescales set by the borrower. A large amount of due diligence was undertaken within a relatively short period of time, and so all credit to the teams on both sides. “The Maltings is a key retail asset which has been extremely resilient during the pandemic and has significant potential for value-add over the coming months. We are excited to have partnered with Westbrook on this transaction, a relationship we look forward to building upon.” Steve Boultbee-Brooks, Chairman of Boultbee LDN, added: “Extraordinary events call for the most extraordinary professionals. Despite being in the middle of a pandemic and a harsh trading environment, The Maltings continues to buck the trend with a steady recovery trading at 98% occupancy. “Unbranded Finance & Westbrook demonstrated an experienced, professional and pragmatic attitude to getting things done. I am most pleased to have worked with both companies to achieve this result in a short period of time.” The Maltings comprises 300,000 sq ft of retail, office and other commercial accommodation let to around 100 occupiers, including TK Maxx, Wilko and H&M, plus 31 long leasehold residential units and an 800-space car parking operation, all on a six-acre site in the heart of the city.
Founder and CEO of GetAgent.co.uk, Colby Short, commented: “Properties are going under offer at an alarming pace at the moment and buyers continue to swarm the market despite the dwindling hopes of a stamp duty reprieve. There also remains a severe shortage of stock to meet this demand and so sellers are achieving a very good price for their property, often at, or in excess of the original asking price. While a reduction in buyer demand is expected towards the back end of this year, the scales will remain firmly tipped in favour of sellers due to the imbalance between supply and demand and so we should see a buoyant level of property price appreciation remain for the duration of the year.” Director of Benham and Reeves, Marc von Grundherr, commented: “We’re currently seeing huge rates of house price growth not seen since some time before the last property market crash. There’s no end in sight where this current market performance is concerned, despite some having predicted a market slump on and off since the pandemic first started. It’s important to remember that while the market did show signs of slowing down as we approached the original stamp duty deadline, we’re now looking at a very different market altogether. People are returning to work and life is gradually returning to a greater sense of normality and so the stimulation of a stamp duty saving is no longer required in order to maintain market activity. London, in particular, is showing strong signs of a shift in momentum across both the rentals and sales market. This is being driven by a realisation that we can’t work from a secluded countryside bolthole forever and now that we are returning to the workplace, a lengthy commute on a stuffy train is no longer as manageable when it’s required five days a week instead of one or two.” Managing Director of Barrows and Forrester, James Forrester, commented: “The stamp duty holiday isn’t the be-all and end-all where homeownership is concerned and it certainly isn’t the primary factor causing buyers to enter the market at mass. So its tapered expiry is unlikely to cause current levels of market activity to evaporate overnight. Once both the initial and extended deadlines have expired, the fires of buyer demand will continue to be stoked by the availability of 95% mortgage products and very low interest rates. Of course, there will be some period of natural market realignment after such a sustained period of manic activity, but we’re worlds away from seeing a property market crash.” Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “It’s crunch time for the UK market and we can expect to see a far less positive outlook from here on out where house price appreciation is concerned. For far too long, homebuyers have been borrowing beyond their means and offering above the odds in a desperate scramble to secure a stamp duty holiday saving. Now that this is starting to slip through their fingers we will see a reduction in transaction levels and the inevitable decline in property prices that will soon follow.”
For investors looking to add another property to their portfolio this year, there are plenty of options to weigh up as the market remains buoyant, with one Nottingham riverside development offering an exclusive incentive to those looking to reserve a waterfront apartment by the end of July. The developers behind The Waterside Apartments in Nottingham, Monk Estates and Harmony Bridge, are offering buyers who reserve a property by the end of July and complete before the end of September, the chance to have their full stamp duty tax paid in full. The stamp duty holiday was introduced by the chancellor in 2020 to give the property market a boost. After extending the deadline, it is now due to end in June 2021 for properties up the value of £500,000. If investors proceed with sales at The Waterside they would not be able to benefit from the normal stamp duty holiday due to the time taken to complete a sale, therefore the developers have announced that if buyers reserve by the end of July then stamp duty will be paid in full for anyone to complete by end of September. This will not include the 3% premium for being an investor, but property investors looking to secure a quick sale with no chain can take advantage of the stamp duty offer – and invest in a modern, sleek city apartment to their portfolio with views across the River Trent. Situated on Pavilion Road, with enviable vistas across West Bridgford, Nottingham city and the river, the 121-home Waterside Apartments boast a central location, close proximity to independent shops, bars and restaurants, and is in walking distance of the city centre with its historic spots such as Nottingham Castle, the Lace Market and Old Market Square. Sam Monk, director at Monk Estates, said: “Investors looking to purchase their next property can benefit from diversifying their portfolio with the addition of an apartment – they are a reliable investment, holding value and maintaining appeal to residents looking for both short and long-term lets. “Apartments in a great location, with waterside views surrounded by convenient and desirable amenities and attractions, will likely increase in value too, making them an excellent investment for the long term. Appealing to a wide demographic including young professionals, couples, students and commuters wishing to benefit from the lifestyle that living in an apartment affords them, it will be easy to secure both short and long term letting arrangements with tenants looking to move into a centrally located home. “Over recent years, Nottingham has seen an influx in people relocating from major cities, including London. This shift has only increased following lockdown, as many are keen to leave the capital and its high overhead prices behind, looking for cheaper desirable locations, as the trend towards remote and flexible working continues. “Many local experts including the chief executive of Invest in Nottingham put the influx of people from the capital down to the city’s attractive affordable house prices and lower cost of living, solidifying Nottingham on the map as a desirable place to invest in property, offering quality living spaces for those looking to rent. “Apartments are also lower maintenance compared with a traditional house, so landlords have less worry when it comes to the upkeep and preservation of their property. The Waterside Apartments offers investors a unique opportunity to purchase waterfront apartments that hold tremendous appeal to tenants – stunning views and close proximity to Nottingham’s landmarks, amenities and major employers make it a highly attractive place to live. Anyone looking to invest in an apartment here can take advantage of having their stamp duty paid in full, if they reserve a property by the end of the July.” 14 two-bed apartments remain available to purchase, priced from £285,000 to £395,000. Visitors are welcome to view the three-bed show penthouse – complete with a panoramic roof terrace overlooking the River Trent, open plan island kitchen and bathroom with floor to ceiling windows. All homes have been finished to the finest quality using high specification fixtures and fittings, with onsite parking and vibrant communal spaces including a reception concierge.
The majority of homeowners in England remain unconcerned about a stamp duty holiday deadline dip in house prices, although a third would be deterred from selling should one materialise. That’s according to research from the homebuying platform, YesHomebuyers, who found that 83% were unphased about a potential cool in house prices now the initial stamp duty deadline is about to expire. When asked the same question with regard to the second and final deadline expiring in September, 82% remained unconcerned about a potential market cliff edge causing house prices to tumble, with just 4% stating they were very concerned. Yes Homebuyers then asked if a dip in property prices would deter homeowners from selling, with 32% stating it would, although again, 68% would still hit the market regardless. However, it may be the cyclical nature of the property market that is helping boost homeowner confidence in the face of a potential house price slump. 87% stated they had no plans to sell within the next two years, meaning any house price decline caused by the end of the stamp duty holiday is likely to have come and gone. Just 7% plan to sell within two years, although 6% do have plans to sell within the next year. Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “There’s a very real chance that a house price dip is on its way once the stamp duty holiday fully expires. Having spurred an unprecedented level of buyer demand for such a sustained period of time, it’s only natural that this artificially manufactured, house price boom bubble is going to burst once the stimulus is removed. It has caused such concerns that the government has tried to soften the blow, not only by extending the stamp duty holiday itself but by implementing a staggered deadline to minimise the immediate impact on the market. The good news is that many homeowners remain unconcerned, no doubt due to investing with a long term view rather than on a profit and loss basis. With many also having little intention of selling anytime soon, the chances are that any market decline may have been corrected by the time they do. However, those with plans to sell within the next six months may want to do so sooner, rather than later, in order to achieve current market values. That said, with sizable delays also plaguing the market, the best chance to complete before a house price dip is to consider alternative options to sell your house fast.” Survey of 1,080 homeowners in England carried out by Yes Homebuyers via consumer research platform Find Out Now (25th June 2021). How concerned are you with the value of your home falling when the first stamp duty deadline expires? Answer Respondents Not concerned at all 83% Somewhat concerned 14% Very concerned 3% How concerned are you with the value of your home falling when the second stamp duty deadline expires? Answer Respondents Not concerned at all 82% Somewhat concerned 14% Very concerned 4% Would a dip in property values deter you from selling? Answer Respondents No 68% Yes 32% Do you intend to sell your home in the next: – Answer Respondents I don’t intend to sell in the next 2 years 87% 24 months 7% 3 months 2% 12 months 2% 6 months 1%
Research from Build to Rent specialists, Ascend Properties, has revealed which areas of the English rental market have performed the strongest since the 2008/09 recession where the growth in average rental income is concerned. Ascend analysed rental market values during the last property market crash and found that the average rent in England fell from £699 per month in 2008 to £678 in 2009. However, since the end of the recession, rental market values have climbed by 20% to £814 per month during 2020, despite the problems posed to the sector as a result of the pandemic. However, this rental market revival has been far stronger in some regions and none more so than the London market. The average rent across the capital sat at £977 per month in the wake of the last economic downturn. However, today, the average rental income in London has climbed by 68% to £1,638. The South East has seen the second-largest increase in monthly rental values, climbing 39% since 2009, with the West Midlands (25%) and East Midlands (23%) also seeing above-average growth. But even in the North East where this rate of growth is at its lowest, the average rental property is still commanding 10% per month more (£607) when compared to 2009. Yorkshire (11%), the South West (17%), the North West (17%) and East of England (19%) have also seen a considerable increase. Managing Director of Ascend Properties, Ged McPartlin, commented: “It’s fair to say that pandemic uncertainty may have caused hesitation for some when looking to invest within the rental market, particularly in areas such as London where demand has dropped due to the enforced trend of working from home. However, while Covid uncertainty has created a tricky landscape in some respects, we remain a world away from the financial crisis of 2008 and many remain reliant on the rental sector in order to live. It also remains clear, that much like the wider housing market, any periods of instability are relatively short-lived and we’ve seen strong and consistent growth across the board as a result. For the professional investor who may be worried about a potential bump in the road, the build-to-rent space could be the best route to help mitigate any concerns. Not only does the sector provide a higher rental premium to begin with, but the lifestyle offering it provides attracts those with a longer-term view to renting. As a result, residents often rent for far longer terms than the traditional 12 months, providing a more stable stream of income and fewer void periods.” Location Average rent – 2008 Average rent – 2009 Average rent – 2020 Nominal change since pre market crash 2008-09 London £969 £977 £1,638 68% South East £826 £775 £1,078 39% West Midlands region £621 £624 £780 25% East Midlands £589 £556 £685 23% East of England £717 £692 £821 19% North West £581 £564 £662 17% South West £704 £696 £811 17% Yorkshire and the Humber £603 £613 £682 11% North East £560 £552 £607 10% England £699 £678 £814 20%
tado° has announced a new investment of €38 million (USD 46 million), raised from noventic and existing shareholders. tado° and noventic will enter a strategic partnership to develop and distribute new energy-efficient proptech solutions for the commercial housing market. The investment will also be used to drive technologies for sustainable heat generation, OEM solutions for heating and cooling manufacturers, and for expanding into new markets. The commercial housing market is set for digitisation and consists of over 50m homes in Europe[1], which are managed by real estate companies and municipalities. The European Green Deal is putting political pressure on the sector to digitally transform and to manage its energy consumption significantly more efficiently through new technology. Real estate companies are adopting innovation faster than ever. 81% of real estate organisations plan to use new digital technologies in traditional business processes and spending on tech and software is continuously growing.[2] With its intelligent home climate management, tado° provides solutions for consumers and businesses. This includes smart thermostats for heating and air conditioning systems, mobile consumer applications, as well as SaaS products for energy utilities and heating service companies. Today tado° partners with the majority of the top 20 utilities across Europe to help transform them from being an energy commodity supplier to becoming strongly positioned as energy service providers. The commercial housing market shall become a new market segment on the company’s mission to digitise the vast majority of buildings. “The partnership with noventic will kickstart new proptech solutions for the commercial housing market and we’re thrilled to be partnering with noventic who have a wealth of experience in this sector,” says tado° CEO Toon Bouten. “As a leader in intelligent home climate management, tado° is in an excellent position to bring our energy-efficient solutions to this rapidly-transforming market.” “Against the background of the European climate targets, we want to bring together consumption data with smart consumption control to provide even better support to the professional housing industry in the implementation of their energy saving strategies in residential quarters,” says noventic Managing Director Dirk Then. noventic CFO Stephan Bause adds: “With this strategic investment, we are expanding our solution portfolio together with tado° to include a market- leading home climate control technology.” Through the partnership, tado° and noventic will offer new and better energy efficiency and digitalisation solutions to a huge new market of multi-family homes and commercial buildings. At the same time tado° will continue to drive its consumer business, and solutions business for utilities and heating service companies.