Rare Low-Rise City Centre Homes Portfolio Hits UK Residential Real Estate Market

Explore the latest update on the UK residential real estate market with the launch of a unique portfolio of 262 single-family houses in city centres, designed for institutional ownership in the UK rental real estate market.

A new portfolio of 262 single-family houses located across city centres in the Midlands has been brought to market for offers in excess of £60m. Wavensmere Homes, the developer behind this bespoke house type, has designed these properties for institutional ownership in the UK rental real estate market. Approximately 50% of the portfolio, which is being launched as a forward commitment opportunity, will be situated at the developer's £75m Friar Gate Goods Yard redevelopment in Derby city centre. This redevelopment project received planning committee approval in April 2024.

The two- and three-bedroom houses in this portfolio are targeted to achieve an EPC rating of A and are set to be available for occupation between 2026-7. These rental-focused properties come with a fully-fitted turnkey package, boasting market-leading ESG credentials. Each house will feature an EV car charging port, an air source heat pump, and solar PV panels to generate green energy.

Wavensmere Homes has built a strong reputation for urban regeneration and delivering major housing-led schemes within inner cities and towns. The locations of these properties offer a range of on-site communal facilities, including co-working offices, screening rooms, community gardens, and fitness and play spaces. The developer anticipates that institutional funds, particularly those specializing in Build to Rent, will find this housing portfolio highly desirable, with offers invited in excess of £60m, reflecting an attractive net initial yield of 5.00%.

The construction of two- and three-storey houses in city locations represents a departure from the trend of mid to high-rise apartment blocks that have dominated urban skylines in recent years. The demand for eco-focused single-family housing close to major centers of employment, retail, leisure, healthcare, and education is significant.

Wavensmere Homes' plans for the Friar Gate Goods Yard site in Derby include the transformation of two landmark Grade II listed buildings into commercial space and new build homes. The company has also revealed plans for the redevelopment of Wolverhampton's Canalside South, proposing over 500 eco-focused homes and commercial amenities on the 17.5-acre site.

Currently, Wavensmere Homes is working on the Belgrave Village development in central Birmingham and the Barrelman's Point scheme in Suffolk. The company's Nightingale Quarter project in Derby, which involves the transformation of the former Derbyshire Royal Infirmary into a vibrant community with over 900 houses and apartments, has been recognized as a significant regeneration and restoration asset in the region.

The introduction of this unique portfolio of low-rise city centre homes by Wavensmere Homes presents an exciting investment opportunity within the UK residential real estate market. With a focus on sustainability and community amenities, these properties cater to the growing demand for eco-friendly single-family housing in urban settings.