Funders are seeing overwhelming interest in the build-to-rent sector.<\/p>\n
Half (50%) of funders experienced a very strong appetite for lending to build-to-rent schemes and a similar proportion (47%) still have a moderate appetite for BTR lending.<\/p>\n
This is according to a report from international law firm Womble Bond Dickison<\/p>\n
Tom Willows, partner, head of Womble Bond Dickinson\u2019s living practice, said: \u201cThis huge vote of confidence for UK BTR is testament to the vital role that the sector plays in tackling the UK\u2019s housing crisis.\u201d<\/p>\n
When it comes to decisions on financing schemes, funders reported that the three most influential factors are: operator experience and financial strength (42%), occupancy levels and rental income stability (36%), and government policies and regulations (34%).<\/p>\n<\/p>\n
However, there are a string of common barriers to lending. Funders reported the key risks as oversupply of locally competing schemes (42%), construction delays (40%) and that the loan market may not support a refinance (40%).<\/p>\n
What\u2019s more, while the principles behind the Building Safety Act itself are widely supported, an overwhelming 96% of developers believe the administration of the Act have had a depressive impact on the delivery of BTR.<\/p>\n
John Connor, partner, head of WBD\u2019s financial institutions sector, said: \u201cThese decision-making factors are fascinating. There are only so many experienced operators around so, if developers are being encouraged to use the same partners on all their schemes, that could constrain the market.<\/p>\n
\u201cIt\u2019s also interesting to see construction delays as a key risk as well as concerns about the Building Safety Act. While everyone agrees it has provided much needed changes to building regulations post-Grenfell, teething issues with the administration of those regulations have made the sector nervous.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Funders are seeing overwhelming interest in the build-to-rent sector. Half (50%) of funders experienced a very strong appetite for lending to build-to-rent schemes and a similar proportion (47%) still have a moderate appetite for BTR lending. This is according to a report from international law firm Womble Bond Dickison Tom Willows, partner, head of Womble […]<\/p>\n","protected":false},"author":1,"featured_media":443,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n