What is build to rent?

Owning a home is out of reach for many people of all ages in the UK today, particularly for the millennial generation. Rental prices have soared for decades without much improvement in the rental experience, and affordable housing is scarce. Growing populations in urban areas are demanding better rental options in terms of both quality and quantity.
In response, the UK is experiencing a Build to Rent (BTR) revolution.

 

An Industry in its Infancy

The BTR industry in the UK takes cues from rental housing and development trends in North America and other parts of Europe over the past decade. 

The number of BTR schemes in the UK trail behind North American countries. A booming BTR market in Toronto, Canada sees 8,000 BTR units built each year to keep up with demand. In 2016, 8,000 BTR units were built in all of the UK.

While the UK has been slower to adopt BTR schemes, the past few years have seen a market explosion. By the end of 2018, there were 140,000 BTR units either completed, under construction, or in planning throughout the UK. Urban areas have seen more of these schemes, with London housing nearly 15,000 BTR homes - more than the rest of the country combined.

With BTR standards becoming increasingly codified, and as more investors and government initiatives promote the growth of the industry, BTR homes are expected to become a more popular rental option throughout the UK.

 

A Promise of a Better Renting Experience

The BTR industry is a response to demand for better quality rental housing in the UK. 

It marks a shift away from building to sell ideology, which leaves investors vulnerable to changes in the housing market and limits them to short-term investment opportunities. With community owners and operators more heavily invested in the long-term, renters can rest assured that they'll be met with consistent high-quality service throughout the entire term of their lease.

This exceptional service is accomplished through friendly and professional on-site management teams, unique amenities that cater to the lifestyles of contemporary renters, modern suite designs, and a variety of community common zones that promote interaction and collaboration between residents.

 

A Higher Standard of Property Management

The BTR industry challenges landlords who leave renters vulnerable to unexpected rent increases, evictions, and unsatisfactory living conditions. 

Many management companies specializing in BTR forego charging deposits or letting fees; a change that was ahead of its time considering deposits have been limited and admin fees forbidden under the new Tenants Fee Act (2019). 

Building communities that cater to renters, rather than turning build to sell homes into rental opportunities, helps attract more professional management teams and investors, leading to safer and more secure rental accommodations as well as greater development of housing in the UK. Single ownership and single management are at the core of BTR, and that means higher resident satisfaction within BTR communities.

 

An Expanding Demographic

The BTR experience is allowing more and more people to confidently choose renting.

While flexible lease terms, exciting amenities, and prime locations initially appealed to the millennial market and mobile workforce, other groups are looking for more permanent and desirable accommodations as the market grows. 

With affordable options baked into many new BTR schemes, the industry continues to stand apart as a promising solution to a widespread need for better housing options in the UK.