WARRINGTON property group In House has been forced to change its strategy due to prevailing housing market conditions.

The policy of buying and selling residential homes has been put on hold in favour of a new strategy of collecting rents from its existing portfolio. It has funds for new acquisitions, but has been unable to complete due to circumstances.

On the other hand, In House also has properties in need of refurbishment costing £140,000, but does not have the funds at the current time.

In House owns a portfolio valued at around £15m, much of it made up of terraced properties around the North West.

Revenues from lettings and sales in the year to April 2008 were down to £1.2m, from £1.5m, while pre-tax losses narrowed to £787,000 from a £960,000 loss the previous year.

In November, the company announced plans to take a 75% stake in Breatheasy Finance, but those have been delayed while talks take place with potential funders to finance properties identified by Breatheasy for acquisition.

Chief executive Marcus Cassidy said: “The group had expected to make further property acquisitions and is still looking for appropriate opportunities, but the current economic uncertainty is impacting on the ability to complete such deals.

“The group retains its existing funding facility with Dunfermline Building Society and expects to be able to acquire further properties once the current economic uncertainty has eased.

“The group is, therefore, currently concentrating on managing its existing stock of residential properties on which rental yields are being maintained, while at the same time finance costs are being reduced as the interest rates have fallen.”

In House has just five employees and a wage bill of £225,000.

BARRY TURNBULL