Build to Rent
High deposits, affordability issues and rising house prices have made home ownership a pipe dream for those looking to get on the property ladder, and as a result, many people are opting for long-term rentals instead.
Over the past 10 years, the number of renters in the UK has doubled, with around roughly 20% of those being in private rented accommodation. Research indicates that roughly a third of private tenants will rent for the long term, with one in three millennials looking set to remain in private rented accommodation for life.
The growth of the private rented sector has given rise to new ways of renting, with developers competing to offer something different.
Build to Rent (B2R) is an emerging, fast-growing market in the UK. B2R is a term used to refer to private rented residential property, which is built/designed specifically for the rental market rather than for sale.
How does it work?
B2R developments are often owned by property development companies, (or in some cases pension or investment companies), and they are either rented out directly or through a dedicated estate agent.
B2R properties vary from clusters of townhouses to blocks of studio apartments, making them a good choice for many different types of renter.
Unlike private landlords, Build to Rent providers usually manage the whole building or development. Many offer high-spec interiors, communal facilities and property management services, such as:
- On-site facilities such as gyms, cafes and attractive outdoor spaces
- Events and residents groups to foster a sense of community
- On-site support and maintenance teams
- Bills included in one monthly cost
- Concierge services
What are the Benefits of Build to Rent?
B2R allows property investors to achieve long-term returns as part of their wider investment portfolio.
B2R developments also benefit tenants by:
- Increasing the supply of new homes in high demand areas
- Driving up the quality of new homes
- Providing greater choice of accommodation to suit different needs
- Professional facilities management, which can be more reliable than a landlord
- Affordable, flexible housing
Local areas benefit from:
- Long-term investment and regeneration
- Creation of new businesses to service the communities living in the developments
- Creation of new job opportunities
Currently, the majority of Build to Rent developments are concentrated in London and the South East. However, the demand for rental properties is increasing right across the UK, and new B2R developments are starting to pop up all over the country. We anticipate that we’re just seeing the beginning of the Build to Rent boom.