Aviva enters into buy-to-let market
After the governments Housing and Communities Agency (HCA) called upon companies in a variety of industries to back projects that would increase the amount of rental and housing property, Aviva has launched its first endeavour into the buy-to-let market.
In conjunction with a three way partnership with property consultants CB Richard Ellis and a major US residential manager, the trio has established the first ‘bulk-stock’ rental property model. By buying up vast developments and thousand of homes near major transport “hubs”, they will be the first in the UK to supply large scale family housing .
The 100 unit blocks will create a much needed influx of housing for residents in the Southern parts of the country as regenerated towns are stifled by the lack of investment in the declining economy.
This model is already widely practiced in the United States and in Northern Europe combined with the downturn in the economy and many struggling to afford housing, Aviva said that its £1 billion investment seemed ideal for the time.
They are making the first step into an unknown system in the UK as other large investors had been deterred from setting up large rental operation due to the hefty management costs. However the third party to Aviva investment trio should be able to hack the companies property portfolio.
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July 29th 2009
- Buy-to-let landlords benefit from growing sales sector
- Buy-to-let property on the rise
- Rents stabilise while buy-to-let prices rise
- Rent falls as supply rises
- Buy-to-let sector reliant on future outlook
- Licence taken from landlord due to unfit property
- Buy-to-let investors are mainly British
- Landlords must have sufficient Let Property Insurance
- Funding that is designed to reduce the risks of buy to let
- Rent prices continue to fall