Construction Consultants on why Build-to-Rent is the light in economic recovery
Many sectors have struggled during the COVID-19 pandemic. However, Built-to-Rent (BTR) has moved against the current and demonstrated real progress. Not only has the BTR sector come out favourably against other sectors over the past 12 months but also against its own previous performance. £1.8 billion of capital was deployed in the third quarter of 2020, which represents the highest ever quarterly total for BTR. According to high level construction consultants the BTR sector is one that continues to attract investors who are able to see the long-term returns, that is one of the reasons why it has the potential to be the light in economic recovery.
Buoyancy in the face of downturn for Construction
The UK economy is currently struggling with a downturn driven by the impact of COVID-19. This is forecast to continue for some time as many sectors, such as hospitality and retail, try to recover from the effects of lockdowns and curtailing consumer spending. BTR stands out as one of the few areas of the economy that has continued in an upward trajectory throughout the pandemic so far. While property being constructed for sale could well suffer as a result of a lack of available credit for buyers, as well as drops in confidence and falls in sale prices, even if the economic downturn continues the BTR sector is likely to remain strong.
How could BTR support broader economic recovery?
There are a number of key ways in which BTR can be a light in economic recovery, not just for the housing sector but the wider economy too.
- Supporting greater mobility. BTR developments provide more flexibility to individuals, allowing them to follow the work and move to new locations with less admin, cost and hassle.
- Employer advantages. With more BTR developments that enable greater movement of people around the country employers can expect to have plenty of high quality applicants for roles required to help a business find its feet again.
- Improving the built environment. BTR developments are designed to achieve a balance of efficiency and aesthetics, to integrate technology wherever possible and to achieve a high quality build. This creates more scope for building design that saves the occupants money and which can contribute to regeneration of struggling areas.
- Adapting for home working. Remote working is likely to remain a part of life for many businesses and employees for some time and BTR developments can help to support this. From better inbuilt home connectivity to co-working areas and hubs that are integrated into the building design there are many more opportunities to support home working productivity.
- Local economic benefits. Each BTR development brings with it a number of economic advantages for the area in which construction is taking place. From job creation to improving the quality of infrastructure in the area and attracting new shops and businesses that will benefit existing local residents there are many benefits to consider.
BTR has a lot to contribute to economic recovery in the coming years. From creating jobs through construction to enabling greater worker mobility it could provide a light in economic recovery in more ways than one.
At RG Group we are currently active in a variety of residential projects. We would love to consultant with you about construction management of your upcoming residential projects.