🏢 Is Build to Rent the future? 🤔
The subject of Build to Rent, otherwise known as BTR, B2R or co-living, is growing in all areas of the UK. It started predominantly in London as a way for new professionals to be able to afford rents without the need to move into HMOs. It started back in 2012 and was used as part of the legacy program for the Olympic developments to change to private rented accommodation. Since then it has grown in momentum with 38,000 properties being built in the year Aug 2021-2022 which was backed by an investment of £4.7bn.
With a shift in culture, the demand for more professional service-style shared accommodation is on the rise. Developers saw this trend and so an opportunity to move away from the traditional build to sell concept to cash in on the increase in the number of people renting property. With the average rent in co-living being 11% higher than a private rented counterpart you can see this was a good decision, and a great investment opportunity.
So what can residents expect from BTR which is different from the standard rental model?
📊 Short let options – BTR gives tenants the opportunity to choose their tenancy length.
💷 Pricing options – with term options, pricing also can be flexible.
🤩 Quality housing – many properties are built from foundations, or completely redeveloped older buildings.
👩💼 Professionally managed – there is an emphasis on customer service to ensure the highest satisfaction levels for residents.
👫 Communities – developers make special efforts to create a community spirit within the building by making communal areas including lounges, gardens, dining spaces, co-working areas and games rooms.
🎩 Luxury – many developments have a concierge to cater for the needs of the residents, giving the building an air of a hotel or serviced apartment.
🍕 Extras – often the BTR provider will have special deals with local shops and eateries to
complement their residents' expectations. Dry cleaning picked up and delivered? No problem! Specialist food packages to your door?! Absolutely!
🏡 Redevelopment – many developers will also regenerate the area around the building to engage the local community in the new project
🧾 All inclusive – for residents there’s no need to worry about having to arrange utility bills, TV or Wifi as these are often included in the rent.
We believe BTR has a very big part to play in the rental market, however doubt it will ever outweigh the desire for private properties or independent family homes.
Do you have any experience in BTR? What does the next big development look like to you?
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