Build-to-rent properties are those which are developed with the rental market in mind. This means they have to offer high-quality, modern living and communal outdoor spaces, as well as more bespoke features such as a concierge service and residents gym. It is a concept which has grown in popularity in recent years, especially since its use as part of the legacy programme of the 2012 Olympics in Stratford.
Below, we have outlined how the build-to-rent market is performing in the UK, the locations where it is especially popular and the opportunities it presents for property investors.
Market growth in 2020
Research by the British Property Federation shows that the build-to-rent sector experienced growth in 2020. The number of completed build-to-rent homes ‘increased by 23% from 43,598 in Q4 2019 to 53,720 in Q4 2020.’
This is especially notable given the impact coronavirus restrictions have had on the wider property market. It is testament to the resilience of the build-to-rent, which increases the accessibility of high-quality homes for renters.
Popular build-to-rent locations in the UK
Young professionals have also been drawn outside of London to rent in regional towns and cities across the UK, according to SpareRoom.
Our investment locations are among the areas which have experienced a growth in rental demand. For instance, Brighton has seen an increase of 54% year-on-year, and Peterborough is up by 53%. This is promising news for investors looking to expand their portfolio to build-to-rent properties as it proves the strong demand within the market.
What does build-to-rent offer investors?
Michael El-Kassir, Managing Director of GRE Assets, comments: “The build-to-rent market is not only a growing one, but one that is extremely resilient. Even at times of turbulence, such as the Covid-19 pandemic or 2008 financial crash, rental demand remains strong.These developments offer a guarantee of quality and give residents access to the likes of a concierge service and residents gym, which are less common on the homebuying market.
“Following the Covid-19 pandemic, we have seen a shift in institutional investment, from the commercial property sector into the residential build-to-rent sector. This market is extremely exciting and one that we are currently exploring at GRE Assets.”
GRE Assets has been delivering high quality, well connected homes in the UK for both buyers and renters since 2006