Build to Rent
What is ‘Build to Rent’?
As the name suggests, ‘Build to Rent’ involves building homes specifically for the rental market, and has become an emerging new sector within the UK’s housing market. The emergence of this market has derived from the number of UK residents privately renting, which has doubled in the past ten years. It’s estimated that 20% of households are now private rented accommodation with this rising to 30% in London.
Benefits of Build to Rent
There are a number of benefits of build to rent, some of which we have outlined below.
Increase housing supply
The main benefit of Build to Rent is, of course, that it will increase the housing supply. With the demand for homes far exceeding supply, this was the main catalyst for the scheme. Build to Rent helps solve the need for providing good quality housing for those who do not want to make the commitment of purchasing a home, or those that are currently unable to.
Range of properties
Another benefit is the increase in the variety of different houses being built. There has been a rise in the number of families renting their homes long-term, meaning that there is an increased demand for family homes of 3 or more bedrooms. Typically houses built for renting were one or two bedroom flats for those not ready to take their first step on the property ladder. However this is no longer the case, as there are now a variety of properties being built to meet the needs of renters.
With the increase of Build to Rent properties also comes an increase of investment into the local area. When houses are built this also increases the need for local amenities. On a large scale this can mean schools, doctors’ surgeries and infrastructure, whilst on a smaller scale this can mean more economic investment to the area, such as independent businesses.
The future of Build to Rent
In 2017 the market attracted investment of £2.4billion, and thanks to this significant investment from the Government it is likely that Build to Rent will continue to rise. It has therefore been predicted to grow by 180% in the next five years.
Build to Rent is likely to also open up opportunities for landlords in the future. If you are a landlord looking to expand your portfolio, then please contact your local branch who will be able to advise you on the best possible options.