Islamic Gatehouse Bank to aid UK housing crisis
Britain’s mainstream banks may be reluctant to lend these days, but a Kuwait-backed Islamic bank is to become one of Britain’s biggest residential landlords with a plan to build 6,600 rental homes and gain from the shortage in decent housing stock. It promises to be one of the biggest privately run home building projects ever.
Shariah-compliant Gatehouse Bank hopes to gain from the big shift in the country’s housing market away from buying to renting, as mortgages have become more scarce and unaffordable and prices have risen out of the grasp of many families.
Gatehouse, based in London, has formed a joint venture with the property developer Sigma Capital to leap into the sector. Initially they will build 2,000 new homes in Liverpool and Salford at a cost of about £200m before going on, if the venture proves a success, to build a further 4,600 properties with a further £500m investment.
If successful, it would overtake Britain’s biggest stock market-quoted landlord, Grainger Trust, which has currently got 4,000 homes, mostly in London and the South-east. Grainger recently reported a 24 per cent increase in the value of its estate.
Gatehouse vice president of real estate Scott Nichol said: “For us the supply-demand dynamic is absolutely rock-solid. We only see that growing as affordability constraints continue to strengthen.”
He said the private rented sector was very fragmented, with many “mom and pop” landlords. “Our entrance into the market is to try and bridge the gap between landowners, developers and housebuilders, and the institutional market.”
Shariah-compliant investments are not allowed to work on the basis of interest or monetary speculation. Surpluses have to be shared by all parties.
Gatehouse already has a £1bn property portfolio across the UK and US.
- 1 Pope Francis issues top 10 tips for happiness
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 Now diplomacy has failed, boycotting Israel might be the only way we can protect the people of Gaza
- 4 Israel's propaganda machine is finally starting to misfire
- 5 Kelsey Grammer forgives the man who raped and murdered his sister in 1975
Russell Brand accuses Sean Hannity of terrorism after aggressive Israel-Gaza debate
Pope Francis issues top 10 tips for happiness
Kenny Ireland dead: Benidorm actor dies aged 68
Justin Bieber posts Instagram photo of a crying Orlando Bloom after Ibiza fight 'over Miranda Kerr'
Air Algerie AH5017 crash: Jet fell 30,000 feet in three minutes ‘due to violent storm’
The secret report that helps Israel hide facts
Land for gas: Merkel and Putin discussed secret deal could end Ukraine crisis
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£200 - £500 per day + competitive: Orgtel: I am currently working on a large p...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£28000 - £32000 per annum + benefits: Ashdown Group: Training Programme Manage...
Negotiable: Harrington Starr: Operations Engineer (Redhat, UNIX, Solaris, Data...