This Forum discussion examined some of the trends in the Build to Rent market. These included growth, design, market segmentation and the approach different housing organisations were taking to the opportunity.
Build to Rent (BTR) is not a new tenure, but one that is experiencing some significant growth. The British Property Foundation (BPF) put the figure at circa 140,000 new homes purpose-built for rent since 2012. There are circa 43,000 BTR under construction according to the BPF. So the market shows continued growth.
That is also evidenced by what NHBC is perceiving from its engagement with the investment market. This includes funders from the US, Far East, Scandinavia and Germany.
There are also a growing number of UK investors. Much of the funding is coming from sophisticated investors and “There is a bit of an Arms race at the moment in data to underpin decisions”. Clients are demanding but have strong focus on quality.
The architect is involved in all aspects of design right down to the interiors of furnished flats. There is a requirement to think differently in design around issues like increased numbers move-in and move-out events, robustness of components.
To some extent there is an opportunity to increase the build standard of homes.
On a commercial level the homes are intended to deliver a return. A range of tenures and products is required to deliver genuinely affordable communities though and BTR fits into this. It is a different financial animal than affordable rent, however flexibility needs to be built in.
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Date:
Sponsors:
Contributors:
Andy von Bradsky, Chairman
The Housing Forum
Graham Sibley, Market Development Manager
NHBC
Alex Rose, Associate
Hometrack
Brendan Kilpatrick, Senior Partner
PRP
Paul Quinn, Director of Merton Regeneration
Clarion Housing Group
Charlie Dunn, Managing Director, PRS Division
United Living
Read the full report for practical insights and analysis.
You can download it below.