Kettel Homes, a vertically integrated investment manager, has launched a single family residential strategy through its Kettel Investment Management arm.
Kettel's Rent to Own strategy will be focused on single family housing and will support growing first time buyer demand through Kettel Homes' rent to own solution. In a strategic hire, the former Head of Private Real Estate Europe at Partners Group, Lars Kreutzmann, has been appointed as a Partner to lead the strategy.
Alongside providing access to homeownership, the strategy will drive the creation of much needed incremental supply of energy efficient new build housing, focusing on purchasing two, three and four bed single family rental homes in the Midlands, Yorkshire and the North West over the next 18 months. Initially targeting these regions allows Kettel Homes to make a substantial impact, supporting households in the “squeezed middle” with annual household incomes of £35-75K to get on the housing ladder.
In contrast to shared ownership strategies, the timebound 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 to be purchased are all new build and sourced through established partnerships with leading 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).
Talking about the strategy, Lars Kreutzmann, who is one of the Partners at Kettel Investment Management and the former Head of Private Real Estate Europe at Partners Group, 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.”
For more information visit www.kettel-im.com and www.kettelhomes.com. Kettel Investment Management Ltd is an appointed representative of Langham Hall Fund Management LLP, an entity which is authorised and regulated by the Financial Conduct Authority of the UK.