Affordable housing, which is considered as one of the challenging areas of the housing sector, is in fact emerging as a new investment opportunity, according to a report released by management consultancy firm CIL. The report is clear in its observations – “Affordable housing now represents a significant area of opportunity for the construction sector; from housebuilders and main contractors to product providers and sub-contractors.”
That the solution to the housing crisis in the UK is nowhere in sight is a fact undisputed. In the meantime, the demand for affordable housing is increasing in the wake of spiraling costs for new home buyers. It makes a compelling proposition for property companies to invest in new development schemes and projects to promote affordable housing.
The CIL report notes that the housebuilding is at its lowest level in the UK since the World War II. Incidentally, the decline in affordable housing is to the extent of 80 per cent in the public sector when compared to the 1960s. However, at the same time, private house building grew enormously and today it dominates the real estate sector.
According to the report, property companies are poised to take advantage of the demand-supply gap in affordable housing. If you are keen on investing in housing schemes and developments in the UK, Strawberry Star should be your preferred partner.
Long term debt for affordable housing becomes a significant asset class in its own right, particularly for pension fund allocation. As this asset class grows, the opportunities available for businesses exposed to the sector – and their investors – multiply