In the United Kingdom, Build to Rent (BTR) is most associated with new apartment towers in major city centres, featuring facilities such as a roof garden, 24-hour concierge, gym, communal lounge, and private dining room. However, investors and developers are becoming more interested in suburban BTR homes, and we are beginning to see more investment in this tenure.
According to a survey by Savills, when build-to-rent (BTR) home plans are on the market, they are picked up at record speeds by investors compared to flats. This is due to a significant disparity between the number of persons looking for BTR properties – both investors and tenants – and the number of developers building them.
According to the most recent English Housing Survey, the number of households in private rented sector (PRS) accommodation in the UK has risen to around 4.7 million in recent years, while the number of renting families with children has increased by nearly one million, accounting for 38 percent of all PRS households.
What is the source of resident demand?
For many would-be homeowners, affordability limits on house ownership remain a concern, with more individuals than ever before opting to rent throughout their lives.
As individuals become older and their lives change, so do their housing needs: bigger properties in less urban areas, preferably a house with a garden close to local amenities, jobs, and city centres, become more desired. BTR housing provides housing of comparable quality to the city centre projects to which people have become used as young professionals, but in a family-friendly suburban setting.
Tenants in such buildings would have different demands than those in more traditional BTR houses, which are often extremely contemporary. BTR family homes might be developed further out into the suburbs, with a greater emphasis on local amenities such as stores, schools, parking, and creches.
"Letting rate information demonstrates that residences on the outskirts of towns and cities may let just as rapidly as inner-city apartments," Savills explained. "Renters who desire additional room in residences adjacent to major highway networks have a strong demand."
The modern evolution of the BTR market for families
A new wave of investors is now entering the BTR home market, and they're taking a different strategy. That is, to concentrate on larger-scale continuous projects that allow control from a single operating platform and are more akin to a BTR residential tower. Investors can then develop their own management strategy, taking into account landscaping, a waste plan, amenity, and other factors. In general, more family-oriented amenities will be required. We frequently encounter multi-purpose spaces that might be used for a parent and baby club, arts and crafts workshops, coffee mornings, game evenings, yoga courses, and other events.