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Belvoir Telford Private Rental Sector Executive Summary

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Investing!<br />

PRIVATE RENTAL SECTOR (PRS) INVESTMENT<br />

THE MIDLANDS<br />

belvoir.co.uk/telford


PRIVATE RENTAL SECTOR (PRS)<br />

INVESTMENT - THE MIDLANDS<br />

EXECUTIVE SUMMARY<br />

• The British Property Federation (BPF)<br />

states that the <strong>Private</strong> Rented <strong>Sector</strong><br />

(PRS) will require 225,000 new homes<br />

each year to 2025.<br />

• Price Waterhouse Cooper (PWC)<br />

residential research estimates that 7.2<br />

million households will be in <strong>Private</strong><br />

Rented Homes by 2025 compared to 5.4<br />

million today, a 33% increase in 7 years.<br />

• The PRS sector offers stable long-term<br />

income with the opportunity for rental<br />

growth<br />

• The Midlands offers opportunities in<br />

good quality secondary towns and cities<br />

for PRS.<br />

• Knight Frank recent PRS briefing update<br />

and data from August 2017 highlights the<br />

sector potential which shows gross yields<br />

in Birmingham at 4.25%.<br />

• Secondary Regional Cities within the<br />

Midlands are identified within the market<br />

segment as positive investment, see<br />

Knight Frank Capital Markets at Annex A<br />

targeting 5% gross yields.<br />

• One of the many advantages of entering<br />

the PRS market now is the lack of<br />

development in recent years, offering<br />

the potential to establish dominance<br />

and attract tenants from older existing<br />

housing stock, which is often outmoded<br />

and bettered by new, purpose built PRS<br />

initiatives.<br />

• <strong>Belvoir</strong> project with properties<br />

professionally managed by award<br />

winning specialist letting agents.<br />

Industry leading marketing, compliance<br />

and legal expertise within The Property<br />

Ombudsman’s regulatory requirements.<br />

• The <strong>Belvoir</strong> PRS initial investment plan<br />

has identified build to rent opportunities<br />

within key growth towns and cities in the<br />

Midlands.<br />

• A <strong>Telford</strong> scheme of 150 plots with a<br />

home design mix of apartments and 2, 3<br />

and 4 bedroom houses is available with<br />

the opportunity to phase any acquisition<br />

with an initial purchase of circa 50<br />

homes, see Annex B. The usual building<br />

warranties will be provided.<br />

• Potential to purchase new build homes<br />

with low asset management costs in the<br />

early years.<br />

Privacy Policy can be viewed at:www.belvoir.co.uk/articles/telford-privacy-policy-2018<br />

<strong>Belvoir</strong> <strong>Telford</strong> is a Franchise owned and operated under license by Bella Mercia Limited trading as <strong>Belvoir</strong> <strong>Telford</strong>, registered in England and<br />

Wales, Registration Number: 8963575 VAT reg no: 993 5413 88.<br />

Registered Office: Field House Farm, Aston-by-Stone, Staffordshire, ST15 0BH.<br />

Bella Mercia Limited trading as <strong>Belvoir</strong> <strong>Telford</strong> is a Franchisee of <strong>Belvoir</strong> Property Management (UK) Ltd and not a subsidiary or sister company.<br />

<strong>Belvoir</strong> <strong>Telford</strong> is an Appointed Representative of <strong>Belvoir</strong> Property Management (UK) who are authorised and regulated by the FCA # 309103.

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