The demand is rapidly growing, and according to a recent report by Knight Frank investors have spent £1.9bn acquiring or funding more than 6,200 homes last year – a fivefold increase on 2022. Since 2018, the total size of the single family housing, or SFH, market has trebled.
Investors have also turned their attention to the suburbs, fuelled by demand for renters to create communities. For those investors, the inherent costs and risks involved in the development of these homes require a robust solution specifically designed for the growing market. As these homes often feature high quality finishes, modern amenities and longer habitation periods, it needs a warranty that takes all these things into account.
What does a structural warranty provide to Single Family Housing investors?
Structural warranties are specifically designed to protect investors, and their developers, against the financial risks associated with defects. Some of these defects may not be apparent during constructions but become evident later in the lifespan of the property. This warranty covers the cost of repairing these defects for a set period, which is usually for 10 or 12 years after the practical completion of the property.
What are the benefits of having a structural warranty when building Single Family Housing?
Aside from the above which covers safeguarding for developers and investors from the cost involved in rectifying defects at a later stage, warranties also cover future eventualities. If an investor ever decided to sell the property rather than retain it for rent, then a lender would want to see that the property has a structural warranty policy – and if it doesn’t then lenders may refuse to offer a mortgage. A structural warranty also lets people know that an investor has a commitment to quality construction and long-term value and gives prospective renters the peace of mind that the property is covered.
Why you should use J3 Advisory?
J3 Advisory offers tailored advice and expertise in the placement of structural warranties – since our launch in 2021 we have placed structural warranties on a number of projects and schemes in the Single Family Housing sector.
Our experience, relationships with leading insurers and our network ensure we have the access to save our clients time and money. If you’d like an indication on how much your structural warranty could cost on your next scheme use our online calculator – it’ll give you instant insights, and then one of our experienced team will contact you to discuss your project in further detail.
