Investment manager launches £150m single-family housing strategy
Kettel Homes has launched a £150m single-family rent-to-own strategy, focussed on homes across the Midlands, Yorkshire and the North West.
The investment manager is set to purchase two, three and four-bed single-family rental homes in these areas over the next 18 months through its Kettel Investment Management arm, with an ambition of supporting households with annual household incomes of £35-75K to get on the housing ladder.
In contrast to shared ownership strategies, the structure of the rent-to-own option requires that all homes either be sold to first-time buyers or be moved unencumbered into a clear open market single-family rental portfolio within 5 years of purchase. Tenants can stay beyond the initial rent-to-own period if they wish to remain as a renter long-term.
The homes set to be purchased are all newly built and sourced through already-established partnerships with housebuilders. Only those with a minimum EPC rating of B or better will be offered, as part of a commitment to provide homes with good sustainability credentials and lower energy bills (up to £3,100 annual savings for tenants).
In a strategic hire, the former head of private real estate in Europe at Partners Group, Lars Kreutzmann, has been appointed as a Partner to lead the strategy.
Kreutzmann said: “I joined the team to launch the Kettel Rent to Own strategy as I saw how the Kettel platform provides a unique opportunity at a time when there is a huge demand for home ownership, a commitment from the government to build 1.5 million new homes, an improving financial landscape and a growing appetite for UK single-family housing. Kettel will have a direct impact in supporting the governments drive to create 1.5m new homes while also delivering significant social and environmental impact.”
Chief Executive Officer and Partner, Trevor Stunden, said: “We set up Kettel Homes as an alternative way to buy a new, energy-efficient home without the initial need for a large deposit. Currently, we estimate a staggering 2.8M households in private rental accommodation want to purchase a home but are unable to do so.
“51% of first-time buyers cite deposits as the main barrier. At the same time, most rental properties are EPC D adding to cost pressures and carbon emissions. Kettel Homes exists to help solve the homeownership crisis, level the playing field and help the ‘squeezed middle’ and key workers.”
