O&S Reach 1000 Home Landmark
21/09/2007
A pioneering scheme to provide vital support for people in housing need by acquiring properties from buy-to-let landlords and investors is celebrating securing its 1000th property – two years ahead of schedule.
This innovative contract between Orchard & Shipman and The City of Edinburgh Council (CEC) – the first of its kind in Scotland - was launched in September 2005 and has already become the largest scheme in the UK.
Referred to as Private Sector Leasing (PSL), the scheme looks to find and manage private rented homes – from one to four bedrooms – across all parts of Edinburgh on long-term leases of three to five years.
Landlords and investors – buoyed by Edinburgh’s consistently strong property market - have been quick to see the potential of PSL and have been signing up in huge numbers, some offering leases on multiple properties. (See case study of landlord Alan Whitelaw at rear)
Under PSL, landlords enjoy the security of guaranteed long-term income, rents paid quarterly in advance with no voids and no agent’s fees – and the return of the property in good condition.
Orchard & Shipman, who need to procure 1500 properties by 2010, is now looking to attract new landlords to reach its required target ahead of schedule.
Angela McLachlan, Head of Social Housing Scotland for Orchard & Shipman, believes PSL offers real attractions to investors, particularly to those who may have been put off buy-to-let in recent months.
She said: “To have reached our 1000th property milestone way ahead of schedule is a stunning reflection on the success of the PSL scheme – and a clear endorsement of how property investors feel about the scheme.
“PSL works because it benefits all parties, the Council who face huge demand to provide housing, the families desperate for accommodation in areas that they want to live in, and the landlords who see the benefits of long-term income for their investments.
“Two years since the launch of the scheme, landlord and investor interest remains high. Having both rent and the condition of the property guaranteed, as well as being professionally managed, is proving to be highly attractive. And to know this all happens while your property benefits from Edinburgh’s ever-growing market – which has showed a 97% growth in the last five years – only adds to the appeal.
“For any potential investors who fear they may have missed the boat with recent mortgage rises, the undeniable success of Edinburgh’s PSL scheme proves this is far from the case. We’d say to any private landlord, come to speak and learn how PSL will change your thinking about property investment.”
A survey of the scheme revealed that a phenomenal 96% of tenants and 100% of landlords describe the service as ‘good’ or ‘excellent’ and with 6,000 landlords and investors registering an interest the continuing success of the scheme seems assured.
The main attraction for tenants is that it offers the option of quality accommodation across all 17 of the city’s council wards, giving people the choice of living next to family, friends, schools and local amenities.
Jane McLeod ,34, went to CEC in 2006 when she encountered difficulties at home and within a week she had been offered an Orchard & Shipman property in Dalry which she snapped up.
She said: “The difference this move made to my family’s life was amazing. My children quickly settled into a new school, joined local clubs, and made new friends they could invite back to their new home.”
Such is the growing interest in the Edinburgh PSL that more than half of Scotland’s local authorities have already been in touch with Orchard & Shipman to learn more about the scheme.
A City of Edinburgh Council spokesperson said: “The PSL scheme is an excellent example of the public and private sector working together, in partnership, to provide quality accommodation to customers in housing need. Since the scheme commenced 1300 households have been accommodated in PSL tenancies which has greatly assisted the council in meeting its statutory duties.”
For further information please contact Sarah Urquhart on 0131 561 2244 or info@holyroodpr.co.uk and/or Susan Hart in Communications at CEC – 0131 200 2000
Notes:
*Orchard & Shipman is the largest private sector manager of PSL properties in the UK with contracts with six council authorities.
*Orchard & Shipman currently employs 38 staff in their Edinburgh office, a figure expected to increase to 50 in the next year.