Amid predictions of growing uncertainty in the housing market and increased demand for private rented accommodation, Sovereign Housing Association has continued the diversification of its property portfolio with the acquisition of 84 homes in Bristol, Swindon and Gloucester to let at market rates.
Sovereign, one of the largest providers of social housing in the South and South West of England, offers a range of tenures, and the decision to venture into the area of market rent shows its willingness to meet a variety of housing needs, especially given the current climate in the housing sector.
Earlier this week, Hometrack reported that against a backdrop of economic uncertainty, housing turnover was set to hit a 40-year low. This followed a report earlier this month in which the real estate services provider Savills forecast that rising demand from those unable to buy their own homes would result in private renting accounting for one in five households by 2016.
A first group of 34 homes in Bristol and Tewkesbury was bought by Sovereign Living Ltd, the trading arm of Sovereign Housing Association, in December 2010 and quickly rented out. A second tranche of 50 units at five sites in Bristol, Swindon and Gloucester, ranging from one-bedroom flats to three-bedroom family houses, was purchased in June 2011.
Those units that have been completed were let within an average of two months of practical completion.
“This has been an excellent investment opportunity for Sovereign, made possible by the secure financial footing we are on and our businesslike relationship with commercial developers,” says James Gibson, Regional Development Director. “We identified a gap in the market and these homes have been let very quickly, due to the increasing demand in the private rented market and the high quality of the units we purchased.
“Sovereign is developing a more diverse portfolio of properties, and offering a variety of tenures to a broader range of people. But we are also diversifying our revenue streams, which helps to guarantee our longer–term financial security and allow us to continue providing affordable homes into the future,” Gibson added.
“Given the uncertainty in the housing market as demonstrated by the Hometrack report and the reluctance of purchasers to commit to buying new homes, and in light of the success of our first steps into the private rental sector, we anticipate that Sovereign will make further purchases in the future.”
Notes to Editors:
In the first phase of the agreement, Sovereign Living purchased:
- Sixteen properties at Charlton Hayes/Filton Northfield in Bristol. These included 15 three-bedroom houses and one two-bedroom house.
- Nine properties on the Butterfields/Dorian Road site in Bristol; six are two-bedroom flats and three three-bedroom houses.
- Nine properties at York Gate, Tewkesbury; eight are three-bedroom houses and one two-bedroom flat.
In the second phase, Sovereign Living has purchased:
- Nine properties on the Charlton Hayes/Filton Northfield site in Bristol - two three-bedroom houses and seven two-bedroom flats.
- Ten properties on the Mallard Road site in Bristol: four three-bedroom houses and six two-bedroom flats.
- 15 properties at Windsor Gate in Swindon – four two-bedroom flats, five two-bedroom houses and six three-bedroom houses.
- Six properties on the Copeland Park site at Tuffley in Gloucester, all three-bedroom houses.
- Ten properties on the Butterfields/Dorian Road site in Bristol: nine two-bedroom flats and one one-bedroom flat. These properties are to be completed this month.
Sovereign Housing Association is a charitable body. It comprises Sovereign South+West, Sovereign Twynham, Sovereign Kingfisher and Sovereign Vale, which were merged into a single legal entity in October 2011.
Sovereign Housing Association includes the non-charitable Sovereign Living Limited. Sovereign is one of the largest providers of affordable housing in the south and south-west of England. It owns or manages more than 33,000 properties, offering a variety of tenures.
If you would like more information, please contact Roy Probert, Public Relations Manager for Sovereign, on 01635 277406 or 07827 356479, or email
roy.probert@sovereign.org.uk
