Considering the growth of Build to Rent (BTR) and how this market is being shaped. Covering investment, business models, customer offers and the growing range of building typologies.

 

There’s been a marked shift in the mix of new tenures from private sale and ownership towards rental.

It’s being driven as much by lifestyle choice as affordability. Tenants are interested in the whole package on offer including services as a selling point as much as room sizes or specifications.

Latest data shows there are 40,000 BTR homes in the UK, with an additional 36,000 under construction and another 75,000 in planning.

BTR homes are purpose-built for private rent – they’re professionally managed, focused on the customer experience, and give the lifestyle choice that people want. Housing associations are starting to move into the BTR world.

So too are local authorities such as Birmingham and Manchester, and a number of the London boroughs, especially Croydon.

BTR has become a new asset class that’s caught the attention of American, Canadian, European, and Far Eastern funds. It’s drawn institutional investors away from commercial developments such as hotels, retail and offices into residential, attracted by the growth and long term security of income and yields it offers.

With this new interest from fund managers has come a change in funding models. The first wave of BTR operators bought heavily into existing built-for-sale developments and converted them into BTR.

But now operators are specifying what they want, which has led to a forward-funding model that suits contractors well.

Featured image: Blackhorse Mills, Assael, L&G, London Borough of Waltham Forest
Date:
Sponsors:
Memery-Crystal-logo
Contributors:

Chair: Graham Sibley, Head of Market Development

NHBC

Rory O'Hagan, Director

Assael

Duncan Sutherland, Director of Regeneration

Sigma Capital

Harry Downes, Managing Director

Fizzy Living

David Walters, Head of PRS

Osborne

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