Developers opting to retain units to let
Ecogrove is London’s first major carbon-neutral development. Located in Collier Row, Romford, the private gated community benefits from super-insulated foundation systems, triple glazed windows, and doors, and fitted solar panels throughout each plot, giving it code 6 status, the highest possible rating in the code for sustainable homes.
The developer opted to rent each property in preference to selling them and Beresfords attracted serious interest very quickly from professional tenants. As a result, all properties which were ready for occupation were successfully let. This is great news for the developer, and they now continue to construct more units on the site to rent as demand continues to be very high.
The scenario where a developer opts to retain some or all of their constructed units is becoming more common. In fact, some developers are purely building to rent now rather than selling any of the finished units. This way they enjoy a regular income stream from the rents generated but also benefit from capital growth potential as the value of each unit increases over time.
Developers will generally look for an experienced letting agent located close to the relevant scheme who has a proven track record within the lettings market. This was the case with Ecogrove and the local lettings team at Beresfords engaged with the relevant developer very early on providing rental valuations of each unit and calculating the likely yields they believed could be achieved.
On this occasion it has proved a great success for the developer, and they are now pushing ahead with construction of the next phase of the development with a view to renting every property once ready for occupation.
The units in the first phase which are already built and rented out are managed on a day-to-day basis by Beresfords thus saving the developers themselves a considerable amount of time in having to deal with this themselves.
We are already in discussions with other developers interested in a similar concept for their own sites. Retaining some units or even all of them can prove lucrative for the reasons already provided so for those developers who we are not currently in touch with, this could be an ideal time to get in touch to review your options.
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