How To Kick Start The Property Market Post COVID-19
posted on: 11th May 2020 / category: Uncategorised / posted by: Smart-Pads
It is important to continue to show global Investors that the UK is one of the most attractive places for real estate investment in the world. By prioritising the projects that offer the biggest economic impacts, we can really kick start the economy post COVID-19.
Projects that will bring in businesses and create jobs should be the focus. Priority sectors including logistics, advanced manufacturing and build to rent will all get the markets moving again and get money flowing back into the UK.
This is the time to be innovative and creative, Modern Methods of Construction (MMC) is certainly one way of going about this. This approach can offer potential returns up to 40% quicker and quality of build matching or in many cases exceeding traditional methods.
Many institutional investors are also looking at sustainability metrics to measure performance alongside financial modelling and MMC could be a more meaningful and effective way to satisfy their requirements.
Homes England is a great example of a Government body that has played a critical role in supporting the expansion of MMC through the Home Building Fund which has harvested millions of pounds in private investment to create jobs and build more homes. In 2019 alone Homes England it invested £30m into Yorkshire based modular housing developer ilke Homes and also provided £30m in equity to Urban Splash in its joint venture with Japanese housebuilder Sekisui House.
Both ilke Homes and Sekisui House boast international modular networks, with ilke Homes having close business links to modular building specialist Algeco Group, who operates across 18 European countries including China, Australia and New Zealand, while Sekisui expanded its operations into Australia and Russia and later China and the United States in 2010.
It is also important to ensure that UK based construction companies are future proofing the sector by working with training providers to up-skill people locally in new and modern methods of construction. This will strengthen the labour market and protect jobs in the future