The largest ever Built To Rent (BTR) scheme has been announced by Legal & General, who is set to bring around 1,000 homes and 85,000 sq ft of commercial space to London. Two adjacent sites in Wandsworth will combine for the scheme, providing purpose-built rental homes with long leases for
The plans for the design of Bolton’s first purpose-built, multi-generational Build to Rent (BTR) urban village, have been unveiled. Developer Placefirst aims to transform Central Street car park in the town centre into the new £27.5 million development. “Bolton Council has set out an ambitious vision for the town centre
A new Build to Rent site has been acquired by Legal & General in Chelmsford City Centre. Contracts were exchanged for the site, which was purchased on behalf of the company’s UK Property Fund (‘The Fund’). The Built to Rent site is also known as Chelmer Waterside, forming part of
An interesting development; it has been announced that large investors will, in fact not be exempt from the previously announced stamp duty surcharge to be brought into effect in a matter of weeks. The 3% stamp duty, to be applied on additional homes, was initially believed to only affect those
The largest ever Built To Rent (BTR) scheme has been announced by Legal & General, who is set to bring around 1,000 homes and 85,000 sq ft of commercial space to London. Two adjacent sites in Wandsworth will combine for the scheme, providing purpose-built rental homes with long leases for all ages, demographics and social groups. “As renting continues to become a tenure of choice in the UK, the delivery of high density, high quality developments with vibrant communities is becoming more and more important. To do this, we need to deliver schemes which offer well connected housing options, which are carefully integrated into the public realm, maximising our existing infrastructure and supporting economic growth. This latest development in Wandsworth, our largest BTR acquisition to date, is a perfect example, offering 1,000 new rental homes alongside improving the station infrastructure and offering commercial real estate space to support local businesses,” commented Paul Miller, MD Principal Investing at Legal & General Capital. Located within Zone 2 and adjacent to Wandsworth Town train station, the £500 million development will include a new entrance to the platforms and will form part of the major regeneration of the local area. It will also include 35% affordable housing. Through the creation of a BTR asset class, Legal & General is looking to use its sources of long term capital to help address the chronic lack of housing supply and meet the increasing demand for affordable, quality rental accommodation. “This latest acquisition is another great example of Legal & General investing in a location with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive socioeconomic impact. The location is highly desirable for renters and, with 1,000 units planned for the site, demonstrates Legal & General’s ambition to make a real impact on the delivery of new homes within the UK. Representing our largest scheme to date, this flagship BTR development is another step forward towards tackling the severe housing crisis facing both London and the UK, offering homes for all ages and social groups, as well as reduced living costs thanks to economies of scale,” said Dan Batterton, Head of Build To Rent at LGIM Real Assets.
The plans for the design of Bolton’s first purpose-built, multi-generational Build to Rent (BTR) urban village, have been unveiled. Developer Placefirst aims to transform Central Street car park in the town centre into the new £27.5 million development. “Bolton Council has set out an ambitious vision for the town centre and we are excited to be working with such a forward-thinking local authority. We have developed our plans for Central Street with the wider town centre framework in mind and are confident our proposals will reflect that ambition. Having cut our teeth delivering complex refurbishment projects in regeneration areas, Bolton represents an important new milestone for Placefirst as our first major town centre new-build BTR community,” commented David Smith-Milne, managing director of Placefirst. The village consists of four blocks that include a mix of circa 200 homes – family town houses, downsized apartments, and a choice of one and two-bedroom apartments. The properties will be joined by up to 15,000 sq ft of Grade A office space, and a range of ground floor commercial units. In addition, an outdoor art gallery is also being considered for the development. The overall scheme, designed with MCAU architects, will complement the historic fabric of Bolton centre through a mix of medium-rise buildings set out to create a network of people-friendly streets, squares and courtyards. This is the latest in a series of announcements as part of Bolton Council’s £1.2 billion masterplan to redevelop the town centre. “This project will show that town centre, urban living isn’t just for young people living in boring apartments. Through good design and excellent placemaking, schemes such as this will appeal to families, downsizers and the elderly, living together in a genuinely multi-generational community,” said David Smith-Milne. “As a build-to-rent developer and landlord, Placefirst put the end-user at the forefront of our designs, ensuring we deliver great homes complimented by attractive amenity spaces that bring communities together. Central Street embraces this thinking through the creation of a new residential neighbourhood characterised by human scale urban design and an engaging public realm strategy,” he added. A planning application will be submitted later this year and, subject to approval, Placefirst aims to start work on site by early 2020 with in-house contractor, Placefirst Construction.
A new Build to Rent site has been acquired by Legal & General in Chelmsford City Centre. Contracts were exchanged for the site, which was purchased on behalf of the company’s UK Property Fund (‘The Fund’). The Built to Rent site is also known as Chelmer Waterside, forming part of a major mixed-use development in Chelmsford. This development will provide a landmark urban regeneration scheme for the city, comprising 421 residential apartments, associated landscaping and local retail amenities. Taylor Wimpey will develop the Build to Rent homes, which will consist of 104 studio, one, two and three bedroom apartments in two adjoining Freehold blocks. This acquisition marks the first Build to Rent scheme for The Fund, and will sit alongside recent investments in hotels, healthcare and student accommodation. “This acquisition is in line with our strategy for the UK Property Fund to increase our exposure to alternative operational assets, whilst demonstrating the breadth of our wider fund management platform which has enabled us to collaborate with our well established Build to Rent team. As we continue to actively diversify our holdings into more alternative sectors, Build to Rent will remain a preferred subsector alongside operational hotels, self-storage and student accommodation, giving us real time access to occupational markets with a robust rental growth story,” said Matthew Jarvis, Senior Fund Manager, UK Property Fund, at LGIM Real Assets. “Chelmsford in particular has strong location dynamics, benefitting from a 40% increase in average prices over the last 10 years, according to the UK HPI. With excellent commuter links to London, it is also set to experience notable population growth, placing further demand on housing,” Matthew Jarvis concluded.
An interesting development; it has been announced that large investors will, in fact not be exempt from the previously announced stamp duty surcharge to be brought into effect in a matter of weeks. The 3% stamp duty, to be applied on additional homes, was initially believed to only affect those investing in less than 15 properties yet, in the recent budget announced by Chancellor George Osborne, it has been made clear that even those with a larger property portfolio will be subject to the stamp duty. Of course, in contrast to previous statements of optimism within the private renting sector, the news is heralded as a concerning development for the build to rent sector, with concerns raised over the profitability of such endeavours for investors. Expected to represent a considerable deterrent to those pursuing build to rent investments as their primary mode of investment, and, as highlighted by the British Property Federation’s Chief Executive, Melanie Leech, it may also restrict the sector’s ability to: “Deliver a significant number of new, quality affordable homes.” And while those purchases incorporating greater than six different residential properties can indeed be regarded as a non-residential investment, simultaneous reforms made to stamp duty for commercial properties is expected to provide a boundary for those looking to sneak around the stamp duty implemented. With this development now making it night on impossible for investors to avoid the additional charges, dampened spirits present the problem of a negative outlook on the performance of the sector and associated supply, whilst demand for private rented households has been clocked in at an approximate 1m over the course of the next five years. Responding to outcries from the wider sector, Berwin Leighton Paisner’s Head of the Corporate Tax Team, Elizabeth Bradley stated: “The chancellor has acknowledged the need to build more homes but the extension of the extra SDLT rate on buy to let to large investors will discourage investment in the private rented sector.”
