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Gold, gilts and ground rents

By: Language: English Series: Sustainablebuilding inc Propertyforecast ; (56) August 2011, 15(1)Publication details: 2011Subject(s): Summary: Ground rent portfolios with their predictable long-term cash flow are beginning to make inroads into the UK investment market. Income of 5% from residential ground rents is looking increasingly attractive compared to yields on 10-year gilts which have recently fallen below 2.5% and interest on most bank deposits sitting below 0.5%. Outlines what a ground rent is and gives brief notes on the ground rent market and the main companies involved. Recommends the sector to institutional investors.

Ground rent portfolios with their predictable long-term cash flow are beginning to make inroads into the UK investment market. Income of 5% from residential ground rents is looking increasingly attractive compared to yields on 10-year gilts which have recently fallen below 2.5% and interest on most bank deposits sitting below 0.5%. Outlines what a ground rent is and gives brief notes on the ground rent market and the main companies involved. Recommends the sector to institutional investors.