The demand for investing in residential property funds in the UK has been one of the primary trends since the Global Financial Crisis.
The affordable housing industry has the same long-term structural demand drivers, the element of risk versus return, potential for growth and insulation from volatility that has drawn investors’ attention to other residential sub-sectors. It also offers a good opportunity to create an impact socially and long-term investors are increasingly looking for ethical opportunities. Private finance has long played an important role in the sector through debt finance, particularly bank debt and capital market funding from either private or public bond issuance’s. The bond market trading is mostly financed by private capital for long term financial return and demand to fund Private Registered Providers has been robust in recent years. Furthermore, private funding is not new concept in the sector but the recent surge in demand of equity investments has become a hot topic in the industry and media.