Croydon Council is investing in private renting

In July Croydon Council made an interesting move to help it provide more affordable homes. The local authority chose to invest an initial £25 million in a new charity that will focus on buying up market homes that will be used to house tenants who need more accessible housing. The properties are expected to be offered for 65% of market rent on three year assured tenancies.

The charity, Croydon Homes, will buy 250 properties in the Borough. They will be a mix of two and three bedroom properties, ensuring they can cater for the needs of numerous families.

In total the project is expected to cost £100 million. The unique thing is that Croydon Council is planning to invest the unspent funds from Right to Buy sales into the charity. This figure could total £30 million.

The homes that are purchased will be designated for households currently in emergency accommodation such as bed and breakfasts while they wait for homes to become available. Moving them into the newly purchased homes is expected to save the Council around £1.2 million per year.

Although the project is not expected to deliver a huge financial return it is important to consider the savings. The move will also make private renting more accessible to households that need help the most.

The project is definitely interesting and will see the charity looking closely at the investment properties Croydon has to offer. The right homes will provide long term benefits and could also deliver great capital gains in the future, especially if values continue to rise.

At Finefair we have a lot of experience with investing in property. Our team help numerous investors to find the right properties and handle managing them. We provide dedicated services and can adapt to suit a wide array of requirements.

If you are thinking about the investment properties Croydon has to offer you can contact us for help. We have good knowledge of the Borough and the opportunities on offer.