Business & Investments

Vendra Capital Doubles Down on Affordable Housing Strategy as Rental Demand and Income Growth Remain Strong

Vendra Capital is reinforcing its focus on affordable and mid market rental housing as long term rental fundamentals across the UK and select international markets continue to strengthen. The firm’s strategy is built around one core principle: income that is real, paid and compounding.

Rental housing remains one of the few asset classes where investors receive tangible cash flow while underlying income grows year after year. Unlike speculative assets that rely solely on price movement, rental property delivers realised returns through consistent income distributions.

Rental Demand Continues to Strengthen

Independent UK housing data continues to show rental demand materially outpacing supply. Average UK rents have increased steadily, with annual rental growth typically ranging between 5 and 8 percent, and higher in high demand urban and commuter regions. Affordable and mid market housing remains the most resilient segment, supported by long term undersupply and affordability pressures.

Occupancy levels in this segment frequently exceed 95 percent, reinforcing the stability and reliability of rental income.

Rents Rise While Income Compounds

Rental income benefits from natural annual increases. As rents rise, investor returns increase without additional capital investment, creating a compounding income effect over time.

A property producing a 7 percent yield today can generate materially higher effective returns as rents adjust annually. This dynamic differs fundamentally from price based investments, where value may fluctuate without delivering income.

Rental income is realised, measurable and distributable, providing investors with visibility and consistency.

Selective International Markets With Enhanced Yield Potential

Alongside the UK, Vendra Capital evaluates selective international rental markets where fundamentals support stronger income performance.

In Dubai and Abu Dhabi, long term residential rental yields commonly range between 8 and 10 percent, supported by population growth, employment inflows, limited taxation and landlord supportive frameworks.

In addition, depending on asset selection and rental strategy, Vendra Capital has observed short term rental yields reaching up to 14 percent in parts of Abu Dhabi and Dubai. These opportunities are highly selective and strategy driven, requiring disciplined underwriting and active operational management.

Disciplined Sourcing Focused on Rental Anomalies

Vendra Capital applies a highly selective acquisition process. The firm reviews hundreds of potential opportunities, proceeding with fewer than 3 percent of deals assessed.

This process is designed to identify rental anomalies: assets that can be acquired, repositioned or operated to deliver strong rental yields of 8 percent and above. Each opportunity must meet strict income benchmarks, demand fundamentals and downside protection criteria before capital is deployed.

The objective is precision rather than volume, focusing capital only where rental performance materially outperforms the wider market.

Real Returns Backed by Real Demand

Vendra Capital prioritises income that is paid and realised. Rental income is distributed on a recurring basis, providing tangible returns rather than unrealised paper gains tied to market volatility.

By converting ongoing demand for housing into dependable income, the strategy aligns investor outcomes with real world fundamentals and long term cash flow growth.

As rental markets continue to strengthen and income driven investing gains momentum, Vendra Capital positions affordable and mid market housing as a disciplined strategy built on selectivity, compounding income and paid returns backed by enduring demand.

Website: www.vedra-capital.com

Email: [email protected]

Disclaimer:

Vendra Capital works exclusively with High Net Worth Individuals (HNWIs), Sophisticated Investors, Professional Investors, Family Offices, and Institutions. Eligibility may extend to investors residing in jurisdictions that support or comply with our investment framework, regardless of categorisation, subject to applicable regulations. All investments involve risk, and returns are not guaranteed. This information is for general purposes only and does not constitute financial advice or an offer to invest.