Growth Of The Build To Rent Sector Symbol Of Changing Britain
The growth of the Build To Rent sector is a symbol of a changing Britain, in says one of the players in the BTR industry.
Paul Staley – director at Wise Living – says recent research by the British Property Federation shows that the Build To Rent sector homes will rise in number from 76,800 to over 380,000 in the next decade.
He comments: “With the ongoing housing crisis, interest rate hikes on mortgages and an increased pressure on raising housing standards that are squeezing private landlords, professionally managed BTR homes are becoming more essential in the UK as the buy-to-let industry struggles to keep up with demand as home ownership becomes more unattainable.
“People need a place to call home and it looks increasingly like BTR homes are poised to fill the gap within the housing market and will take a leading role. So, while the origins of BTR were student accommodation and city centre apartment schemes, this will expand into the rise of BTR single family homes (SFH).
“Therefore, the predictions that SFH are expected to grow to 18 per cent of all BTR stock from its 12 per cent today is not a surprise. More people, right across the UK – not just in cities – want to rent a family home.”
This change in the UK housing landscape is also influencing the behaviours of property stakeholders who are responding to these trends, according to Staley.
He continues: “For investors and housing developers, this has meant a shift in the types of portfolios they are creating. It makes sense to diversify and spread both the risk and opportunity. They are doing this by looking outside of the more established BTR markets and into SFH in suburban towns.
“In fact, as the UK follows European trends and continues to change from a buying generation into a renting culture, it is highly likely that SFH will outpace other types of BTR housing eventually. At Wise Living we have seen this demand in-action, with over 15 schemes delivered in the past few years and a healthy pipeline of single family BTR developments.”
As the industry grows this will inevitably increase the number of BTR specialists who will enter the market too, however this needs to be approached with caution.
Staley concludes: “The industry has grown considerably over the last decade, but its success is dependent on the knowledge of the BTR specialists who need to guide investors, developers and local authorities in making the best decisions. Everything from location, housing layouts and types must be looked at and specifications developed to maximise return on investment, while also providing housing that is both high quality and value for money.
“The earlier the conversation when it comes to coordinating value for BTR opportunities makes the process more efficient, less risky and speeds up return on investment.”