Barratt showhomes offer guaranteed yield to investors

Barratt North East is unveiling a major initiative to sell showhomes at its developments to buy-to-let investors– as investor buyers return to the region’s property market in significant numbers for the first time in four years.

The housebuilder says the return of investors may be an early sign that the local property market will outperform other areas of the country in 2011.

“We have not seen this level of demand from investor buyers outside of London since the downturn of 2007,” said Fenton Hewitt, Sales Director at Barratt North East.

“That is why we are today unveiling a deal called Showhome Leaseback, which comes with a guaranteed yield of seven per cent.

“Buyers have the opportunity to buy the showhome at selected developments in the region and then immediately lease it back to us for up to four years to use as a marketing suite.

“Rather than have to worry about untidy tenants, the investor knows that we will maintain the property in pristine condition. Barratt is also the only major housebuilder which guarantees internal fixtures and fittings for a full five years.”

Rents in the North East are rising which means that rental homes are increasingly in demand. Whereas investors were primarily interested in flats before 2007, today they are looking for high-quality new houses.

“They take the view that the direction of house prices in the medium term is up,” added Fenton. “So they expect to be sitting on a tidy profit in three to four years’ time.

“We expect high demand for this product and have set up a new section of our website at barratthomes.co.uk/showhome to provide full details to interested investors.”

A selection of showhomes is being offered to investor buyers by Barratt at developments across the North East at prices from £116,500 up to £445,000, with lease periods ranging from one to four years.

Prices start from £116,500 up to £445,000, with lease periods ranging from one to four years.

An investor buying a property priced at £282,500, for example, and leasing it back over three years would receive an annual return of £19,775 and £59,325 in total.

For more details, visit: barratthomes.co.uk