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Wednesday, December 14, 2011

Housing association goes BTL

Sovereign Housing Association has moved into the market rent sector after it bought 84 homes in the south west. The housing association is looking to rent the properties for full market rents on the open rental market.

‘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,’ said James Gibson, regional development director at Sovereign.

Mr Gibson added that he expected the association to make more similar purchases in the coming years as an increasing number of tenants moved into the private rented sector

An interesting move and maybe an indication of things to come. I'm not sure whether it is fair that a subsidised organisation is allowed to move away from its remit to compete in the private rented sector?

Seems to me that this housing association is getting the big fat chocolate cake and eating it too. Lucky puddings.

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Anonymous said...

Huh?! Meanwhile the waiting list of tenants on housing benefit continues to grow. Whilst I'm OK with competition, I wonder whether these HB tenants would be housed sooner if this housing association focused on their core business?

Paul Barrett said...

This is unfair competition.
Housing Associations have access to cheap finance which private landlords haven't got.
Therefore HA could undercut LL who have to pay full market costs for their funding.