The timing is now perfect to build high-quality, affordable homes and service the demand from tenants, homeowners and investors whilst it remains at all time highs.
Recent turmoil has presented a further opportunity to acquire assets at below current market value which adds a further incentive for experienced developers such as Bramham Properties to create lasting revenue and value using our proven development strategy.
Below-market-price acquisitions allow Bramham Properties to maximise profit margins in a sector where there is a proven demand and shortage of supply.
At Bramham, development opportunities are only purchased with planning permission already in place and often with development work already in process, shortening the timeframe to completion and reducing costs and risks considerably.
We are experts at adding value to existing projects to enhance exit values, increase construction efficiencies and reduce development costs.
The Exit Strategy is even more important than the development strategy
Before Bramham Properties looks to acquire real estate opportunities, its primary focus is the Exit strategy.
Our exit strategies include the following:
- Pre-sales to local borough councils at local housing authority rental rates (LHA Rates). Potential investment opportunity can be sold to Housing Associations because they meet LHA rates is the simplest and fastest exit.
- Pre-sales to Financial Institutions that are desperate for secured yields above banking base rates.
- Re-financing to hold multiple assets, generating a rental portfolio that can be sold as revenue generating asset over the long term.
- Sales to the open market, this being done after careful consideration of demand and demographic of a location.
The average age of people looking to move into a first home in the UK was between 25 and 35 years old in 2016, but now the average first-time buyer is 37 years old.
The open market is not currently catering for this demographic, as most new home developments across the UK are 3-4-bed houses.
The 25-35 age group are typically key workers or young urban professionals who are looking for a comfortable and affordable place to stay for a secure length of tenure.
This group of people will happily live in PRS housing, as proven by the numerous successful emerging schemes.
PRS is also suitable for downsizers and students who are equally attracted to rental accommodation if the right product can be offered.
Why Senior Living?
‘UK facing its biggest housing shortfall on record with a backlog of 4 million homes’
Ground-breaking research by Heriot-Watt University says England has a backlog of 3.91 million homes, i.e. 340,000 homes need to be built each year until 2031.
‘As the UK’s population ages, new forms of accommodation are emerging that cater for older people’s physical needs while still offering a modern, desirable lifestyle’
These include provision of Extra Care Services.
Why should I invest in UK property?
With current levels of global economic uncertainty, real estate is the only asset class which can offer investors security and capital protection from the value in physical bricks and mortar.
With the recent turmoil many have overlooked the fact that there is STILL a housing shortage in the UK.
Over 300,000 new homes are needed each year and currently just 70,000 are being built.
This offers investors a unique opportunity to access an asset with huge demand from end-users and investors, at price levels that have already experienced some softening due to external factors.
With the British Pound now at a 35 Year low against the US Dollar, we expect increasing demand from overseas investors to further compound the growth of UK Property, particularly in the BTR Sector