Jon Clark
Sales Director, Touchstone Property Management
Amid the cost of living crisis, the UK requires a more affordable middle-ground housing solution, with property management companies instrumental in rental home delivery.
Rising interest rates and house prices are highlighting an affordability gap, particularly between social housing and the high end private-rented sector whilstb creating an opportunity for a solution known as middle-ground housing.
Providing an option for a proportion of the population who will not qualify for social housing nor afford the premium rents of Bauild-to-Rent, middle-ground housing has investment potential. Property management firms are now observing a surge in demand for single-family homes to balance supply and demand.
Driving housing affordability
Touchstone Property Management plays a crucial role in facilitating access to affordable, middle-ground housing options within the rental market, contributing to housing affordability, stability and inclusivity in the communities they serve.
Jon Clark, Sales Director, highlights the services they provide when it comes to managing homes. “Touchstone specialises in managing rental homes. We provide a full letting and management service across a wide range of sectors, managing around 19,000 homes across all UK postcodes.”
Addressing housing demand
“Delivery of new social housing is not keeping up with demand for the lower end of the affordability market, with the pressures of interest rates and supply pushing people into the middle housing rental bracket,” Clark explains.
“We are managing new Build-To-Rent stock, single-family homes portfolios, affordable rentals and shared ownership units — this is a huge growth area, not only in terms of managing affordability but in relation to business growth.”
People are more likely to stay in one location,
choosing to extend their tenancy in
neighbourhoods they know and love.
Long-term, sustainable investment
Demand for affordable housing boosts long-term investment opportunities. Asset managers are considering single-family homes as an investment, which aligns with their ESG policies, reinforcing sustainable business practices and societal impact.
“We are working on a growing number of portfolios for UK and global investors, who make a long-term commitment to owning and providing affordable rental homes,” says Clark. “If your model allows you to hold properties for 20–40 years, then making the numbers stack up against lower rent is more sustainable.”
Adaptation and optimising property management
Post-Covid-19, shifting work patterns offer people greater flexibility in choosing long-term living locations. “People are more likely to stay in one location, choosing to extend their tenancy in neighbourhoods they know and love, providing the perception of a safer, longer-term investment,” Clark explains.
However, with the Renters Reform Bill looming, effective property management is crucial. Companies like Touchstone excel in navigating regulations and optimising property performance, aiding landlords to maximise potential while ensuring compliance with evolving regulations.