Developer sets up lettings agency and guarantees 10% ...

A developer building flats and houses in Cornwall has set up a lettings operation promising a fixed 10 per cent gross yield over five years to buyers investing in his units.

Stephens + Stephens claims it is responsible for some of Cornwall’s finest holiday properties in some of its most striking locations.

It has now set up its own lettings arm - Sunrise + Sunset - and says that in addition to the guarantee return it offers opportunities for owners to use the properties themselves.

“Properties have natural capital appreciation” it says in a statement, suggesting that the county has seen an average rise of 17 per cent in one recent year.

Its turnkey service includes what it calls a “boutique concierge service” as well as an interior design service.

Helen Stephens, creative director at Stephens + Stephens, says: “Cornwall has always been a prime holiday location for those in the know, from families to surfers, to those looking for a luxurious escape from day-to-day city life. Since the pandemic, when many of us in the UK were forced to re-discover the fantastic holiday opportunities on home-soil. This combined with a weaker pound, meaning holiday makers get less for their money overseas and a shift towards experience-led holidays, has meant the demand for holiday rental properties in Cornwall has only grown.

“At Stephens + Stephens, we have over 30 years’ experience in creating award-winning, design-led, ultimate-luxe homes in some of Cornwall’s most sought-after spots. As we are from Cornwall, we know it inside out. We know that our properties create not only homes, but exceptional investment opportunities for those wanting to capitalise on the ‘staycation’ boom. This is why we’re confident in our guarantee of a minimum 10% gross yield – and can say that through holiday properties, the potential for significant earnings is greater than long-term lets.

"So confident, in fact, if we don’t hit our guarantee, we will make up any shortfall at the end each year out of the five-year period.”