As more people embrace the advantages of renting, they seek a more professional, reliable approach than the conventional rental market offers tenants, along with the ease of having all services and utilities included within their monthly rent.
Renters seek homes that meet their needs in terms of location, availability and access to local amenities and facilities. Yet, the majority of the UK’s existing housing stock is ill-suited to meet these demands. Houses converted into flats can bring all kinds of issues, while ‘buy-to-let’ landlords often have a reputation for poor service.
New-build developments or the repurposing of commercial buildings is a growing market that offers huge potential for investors, operators and occupiers. But planning rules related to development and build-to-rent require careful navigation.
From acquisition, funding and development, to executing the right operational and asset management strategies, we can help you get the most from the opportunities in the Build to Rent (BTR) space.
A New Sector
BTR properties are designed for the rental market, as opposed to home ownership. Rather than develop a residential block and sell apartments individually, all flats are owned by one landlord, producing a reliable and sustainable income stream.
A landlord that is invested in ensuring common areas and amenities are good quality and well-maintained also benefits tenants, creating a win-win scenario. Increased demand from tenants, as well as institutional investors looking to diversify their real estate holdings, is driving new development.
BTR arrived in the UK following the 2012 Olympics. Since then, developments have sprung up across the UK, with many projects backed by the government’s Home Building Fund. While currently a small portion of the private rented sector, BTR in the UK is expected to be worth over £100b by 2030.
Meeting Complex Needs
BTR developments are often differentiated by the presence of shared amenities and communal areas, including gyms, dining areas and games rooms. The addition of utilities packages, parcel collection and concierge services, mean that BTR schemes tend to benefit from higher rents and higher tenant retention.
Families are one of the fastest-growing demographics in this sector, which is driving housebuilders and investors to create ‘single family’ homes for rent in suburban locations.
Our BTR team of specialists provide a full suite of services, including development and planning advice, forward funding and forward commitment transactions, joint venture transactions, acquisitions and disposals, and asset management advice.
