Why Vesta – and why now?
March 13, 2018
Vesta was launched in 2018, to provide a dedicated online marketplace for buy-to-let residential property.
That’s quite a mouthful. But for an aspiring buy-to-let community, it’s also hugely significant.
Yes, plenty of organisations have included buy-to-let in their property offerings, but we believe we offer something quite unique – and something which we think will revolutionise the Private Rented Sector (PRS).
So why have we done things differently – removing the obstacles between would-be investors and access to a property market packed with potential?
Simple – the time is right to engage in UK buy-to-let.
State of the nation
The UK’s residential buy-to-let market has grown and grown since its deregulation in 1988.
But don’t take our word for it. The Private Rented Sector is worth over £1.4 trillion according to Savills, and annualised returns for the UK residential investment property sector have exceeded those for bonds, equities and commercial property between 2000 and 2016 – earning a 5.6% return in 2016.  Savills
Thanks to the introduction of specialist buy-to-let mortgages, in 2014 and according to Paragon Banking, two million private landlords owned and let five million properties in the UK.  Paragon
Between 2015 - 2016, around 63% of UK households were owner-occupiers, 20% were renting from a private landlord and 17% were renting from a social landlord.  EHS
The demographic makeup of the UK tenants is diverse. But it’s propped up by so-called ‘Generation Rent’ – the generation currently aged 18-36 are typically spending over a third of their post-tax income on rent or about 12% on mortgages, compared with 5%-10% of income spent by their grandparents in the 1960s and 1970s - says a study launched by former Conservative minister David Willetts.  The Guardian
This means that owning a home is becoming a distant dream for millions of young people on low incomes with just 31 per cent of 25-29-year-olds owning their own property according to the analysis of Government and housing market data for the Social Mobility Commission.  Social Mobility Commission
Obstacles to opportunity
So, today’s buy-to-let market is a valuable one for investors – and if historical trends continue, a particularly buoyant one.
Problem is though, too many investors also remain locked out of the market.
Buying a property outright requires large amounts of capital for both cash and mortgage. The sales and exchange process is time-consuming and stressful, and property searches take time, sometimes throwing up nasty surprises once it’s too late.
And it doesn’t end once a property is finally purchased. Owners are required to make ongoing payments for maintenance and must manage their tenants. Buy-to-let represents a considerable ongoing commitment of time, money and effort.
Sales that make sense
Vesta has also reinvented the sales process for investors seeking to buy a property outright.
Property data and available documentation are made available to prospective buyers before they make their offer. So, sales are faster and more transparent – solicitors need only focus on exchanging contracts once a sales agreement is made (unless the solicitor requires additional documents).
Not only that, most sale properties are listed with their tenants still in place – minimising disruption for the resident and for the buyer, who is not required to find new tenants.
Russell Gould, CEO, Vesta
Property for a new generation
For buyers and investors, Vesta offers a route into buy-to-let property that’s designed to be more transparent, manageable, and potentially more cost-effective than ever before.
And because we’re online, investors and buyers can diversify their portfolio country-wide from wherever they are.
Russell Gould, CEO, has a clear vision for Vesta: “We are providing a digital platform to enable a much wider group of people with financial investment money – whether individuals, family offices or institutions with large pension funds – to bring it into buy-to-let property in an efficient way, via a marketplace that provides housing for people to live in.”
“That’s why we’re doing Vesta.”
Take your property search UK-wide: visit Vesta to find out more
 Savills 2016,  Paragon,  EHS,  The Guardian,  Social Mobility Commission
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