Regional PRS in the ascendancy as Octane Capital passes £200m of completions following another record month
Posted on Jun 08, 2018 | in Press Releases
‘Product-less’ lender, Octane Capital, today announced it has passed £200m of lending, having completed on 13 loans in the last week of May alone — its biggest month yet.
Activity is being driven by the regions, and PRS developments in particular, as investors increasingly seek value beyond the capital. Manchester, the Midlands, Kent, Surrey and Essex are proving especially active.
May highlights included a £9.2m refinance against a recently completed high-spec Build to Rent development in Manchester city centre, Octane’s largest regional loan since launching last year.
The Manchester loan, and multiple other PRS loan facilities provided by Octane outside the capital, reflect the growing focus in investor attention away from traditional buy-to-let, which is reeling from punitive tax changes.
Jonathan Samuels, CEO, Octane Capital, commented:
“To hit £200m of completions is another major milestone and reflects the huge team effort put in by everyone at Octane. The third generation of lending is really starting to gain traction among brokers, offering total flexibility at a time when the market is in a real state of flux. While London will always remain an active environment for us, we expect a growing percentage of our lending in the future to take place in the major regional hubs, including Manchester. In the past two to three years, the balance of power between the capital and the rest of the country has really started to shift.”
Mark Posniak, Managing Director, Octane Capital, added:
“We’re thrilled to have passed £200m of completions but it’s how we got there that’s most interesting. The Manchester loan is symbolic of what’s happening in the property market right now. Not only is investor attention increasingly turning away from the capital to the regions but Build to Rent is in the ascendancy, as many amateur landlords exit traditional buy-to-let due to the harsh taxation regime and tenants seek long-term, lifestyle alternatives. We’re witnessing a fundamental step-change in the market.”
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