Apr 13

Prudential Invests in Private Property Market

In a sign that major investors believe that the private rental market will show little sign of weakening, Prudential’s property arm has announced it has invested in homes in London and the South East.

Prupim, the property division of the Pru's asset management subsidiary, has announced the purchase of 534 homes in London and the South East. It has bought the residential property portfolio from developer Berkeley in a £105.4m deal.

The homes – mainly flats – will come on to the market in June. Prupim believes that the continuing difficulty in obtaining mortgages will make investing in the rental market an excellent move.

Alex Jeffrey, the chief executive of Prupim, said: “We believe that returns from the sector – which have historically outpaced commercial real estate – will continue to be attractive as demand increases. We expect the supply and demand dynamics of the residential property market in London and the South East to remain favourable for investors, with continued strong demand for quality properties."

The move shows that being a landlord is profitable again. The decision by a large financial institution to get into the booming private renting business is a demonstration that the rental market is now a good investment prospect, as the dream of ownership fades for millions who cannot scrape together the money for a deposit.

What do you think? Do you believe the move by Prupim is a good sign and that private landlords will benefit.

About the author

Eddie Hooker Photograph Eddie Hooker has been involved in the insurance industry since 1985.  He worked with many large insurers such as Legal & General and AXA Insurance prior to setting up his own insurance business, Hamilton Fraser, in 1996.  Hamilton Fraser now employs over 130 staff out of their North London office, dealing with various insurance products for the buy-to-let property market such landlord insurance, rent guarantee insurance, emergency cover and tenancy deposit protection. 

Eddie and Hamilton Fraser Insurance first started to provide landlord insurance as early as 1996 when they became involved with the Small Landlord Association, which later became the National Landlords Association. 

By working closely with the industry’s leading companies Eddie and his team have built up a detailed understanding of the landlord market ensuring that the customer experience is founded on knowledge and support.  This has been highlighted in a recent customer survey that found that 95% of Hamilton Fraser customers were either satisfied or more than satisfied with the service provided by the company.

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