What really is build to rent and why is it becoming so popular?
The housing market in the UK is continually evolving, adapting to changes in demand and supply. Build-to-Rent (BTR) marks a shift in this market, as the need for more rented properties continues to increase. With more people looking to rent – and increased diversity in the types of people who are looking to rent – BTR is going to help the housing market create new options wherever they are required. Renters today have different priorities and needs and the BTR developments that are going up all over the UK are designed to reflect this.
The definition of Build-to-Rent
BTR is very simple to define: properties that are built for the purpose of renting, rather than sale. There is nothing new about building homes for people to live in but across the UK many of these properties are constructed with a view to being sold. This has been the case since the beginning of the 20th century and home ownership, rather than renting, has long been the norm. However, all this is now changing with the increasing number of renters, and BTR is stepping in to fill the gaps. The key difference is that BTR properties are constructed for tenants with a focus on service, site management and amenities such as fitness centres, chill out zones and work spaces built in.
Moving away from old models of renting
BTR could signal a new era of better living for tenants all across the UK. Currently, many of the properties that are offered for rent are conversions that were not designed to house tenants. They are frequently owned and managed by amateur landlords with little experience. As a result, tenants often pay much more for a less than satisfactory experience with few options available to address problems that arise. BTR is set to change all this with developments that are designed for renters and intended to create a much more satisfying renting experience.
Build-to-Rent is the future
Currently, there are around 100,000 BTR developments under way in the UK, either already in the construction stages or being planned or already built. These projects are not just about delivering beautiful homes in convenient locations that are ideal for renters looking to have a positive experience. Many also have a whole range of other benefits that will appeal to tenants. For example, some developments no longer charge the admin fees that tenants frequently have to pay. Shared spaces have been constructed into developments and are available for tenants to use – or to hire for events. Maintenance and repair, which is one of the most frequent causes of disputes between landlords and tenants, has been tackled with on-site maintenance teams able to respond quickly when called. These are just some of the ways in which BTR is changing what it means to rent.
BTR is becoming increasingly well established as a solution for the growing number of renters who are looking to have a better experience – and to get better value for money. Over the next few years the number of BTR properties is likely to significantly increase all over the country.
At RG Group we are currently active in a variety of residential projects. We would love to talk to you about your upcoming residential construction projects.