The latest edition of Showhouse features a column on build-to-rent, from Howard Crocker, managing director of our client Delph Property Group
Rising stamp duty costs, loss of mortgage and furniture relief and stricter rules on short notice evictions have made life much more difficult for buy to let investors, introducing new costs many investors are unable to afford. Howard states that as a result, sales of off-plan and new-build residential properties are dwindling. These sales had long played an important role in helping smaller developers secure finance for their projects. Without them, the market has generally shifted in favour of major housebuilders developing large scale schemes on bigger sites, as SME housebuilders often struggle to secure forward funding from banks reluctant to lend.
Delph’s new build-to-rent brand, Kooky aims to address this with its new funding model that provides deposits of 30%. This allows SME housebuilders and developers to approach banks with a development that has had all risk removed.
The full column features on page 64 of the latest issue of Show House, which can be read here.
In it, Howard discusses Kooky’s approach to collaboration, its recently completed deals and the brand’s future ambitions, as well as expectations for the wider BTR sector.