A new online property marketplace targeting the private rented sector says it will standardise the sales process and lessen disruption for tenants.
Vesta, the brainchild of a team of fintech and property experts, aims to increase profits for buyers and sellers, and bring the UK’s PRS more in-line with European and US markets.
Fintech entrepreneur Russell Gould, Vesta’s chief executive, said: “Within the next five years, we strongly believe that Vesta will be the norm for the residential investment property sector, bringing together housebuilders, buy-to-let sellers, buyers and property investors.”
He said the online marketplace would reduce the chances of gazumping, and by offering property for sale with tenants in place could reduce disruption. Ministry of Justice figures showed more than 40,000 people were evicted in England in 2015 – the highest level so far recorded.
“So much of this sector is owned by small investors who buy and sell properties that are vacant and unfurnished. This is costly, time consuming and often a painful experience for tenants and landlords. With less rental and capital growth on the horizon, costly tax changes relating to both stamp duty and interest set-offs and tougher rules around mortgage terms, there’s an enormous potential in our trading platform to attract institutional investors, a government policy objective,” said Gould.
The business has so far secured marketing options for more than 177 tenanted properties, including some blocks, valued at approximately £50m. It has also raised another round of funding to launch in the UK residential investment market.
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