Fizzy hopes bubbly buy to let profits will boost social housing

by Property118.com News Team

16:24 PM, 22nd February 2012
About 8 years ago

Fizzy hopes bubbly buy to let profits will boost social housing

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Fizzy hopes bubbly buy to let profits will boost social housing

A cash-rich housing association is looking to buy to let to generate funds for social housing.

Thames Valley Housing Association has bought 63 flats to rent to young professionals in Epsom, Surrey, and plans to sink another £200 million in to further private rented property.

The plan is buy to let rentals will provide a return for reinvestment in social housing.

The housing association has set up a subsidiary to manage the investments in London and the South East – Fizzy Living Ltd.

Harry Downes, FizzyLiving’s managing director, said: “Only a few young professionals can obtain mortgages so the only option is to rent. Housing tenure has fundamentally shifted right across the UK and the private rental sector is expected to grow as owner occupation becomes little more than a pipedream for the majority of young people.

“There is an acute shortage of professionally managed high-quality accommodation available for private rent to young professionals, and this is the gap we aim to fill.”

TVHA has appointed branding agency Heavenly to create the Fizzy brand, ensuring an appeal to 25-34 year old self-styled “rentysomethings”.

Other housing associations are also considering a move in to buy to let, while Newham Council is negotiating with the government about a law change that will allow the authority to start a buy to let business in the East London borough.

Meanwhile, Sir Adrian Montague has issued a call for evidence for his review of how to encourage greater investment in privately rented properties.

The review is part of the government’s housing strategy, and will examine how to boost rental property investment. The aim is to grow private renting by increasing the supply of affordable homes.

“I want to focus on two fundamental questions. Will the changes that the government has introduced go far enough to generate significant new flows of investment? And, if not, what can be done to accelerate things?” said Montague.

Submissions are sought by March 31 with a report on the findings due around June.



Comments

Rob

20:08 PM, 22nd February 2012
About 8 years ago

Im a landlord in the south east and im not sure i like the sound of this, if the TVHA flood the south east property market with rental properties they will essentially be in competion with me and the other landlords,this could lead to a drop in rents due to the huge new supply of rental properties coming onto the market from this fizzy company.

Rob

20:15 PM, 22nd February 2012
About 8 years ago

i will also add that looking at ther website they seem to be putting down current landlords as being "substandard" which is why they want to "take over" (a little rich considering the standard of accomadation the councils provide) i find this rather insulting. maybe the TVHA should stick to what there good at which is housing the unemployed and the single mums!

11:52 AM, 23rd February 2012
About 8 years ago

Surely unfair competition in that these housing organisations can access funds from govt  at less than market cost which normal LL can't.
Therefore  a distortion of the private market by cheap govt funds.
I as a taxpayer do not want my tax to unfairly compete with the the general marketplace


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