Build-to-rent: London’s new scheme for the many, not just the few.
As I sit down to write about the launch of our second London edition of ‘Who lives in Build-to-Rent’ produced in partnership with the BPF, UKAA, and Dataloft, I find myself making the same typo that I have so often made before when writing the title of this report – ‘Who loves Build-to-Rent’. It’s a pertinent question and whilst the sector may not be feeling a lot of love, particularly given the government’s commitment to homeownership in the recent Levelling Up White Paper, the data in the report paints a more positive picture.
What is Build-to-Rent?
Build-to-rent (BTR) – high quality, professionally managed homes built exclusively for the rental market is still a largely misunderstood part of the housing industry. The view that these homes complete with their gyms, concierge and roof gardens which are only accessible to young, rich professionals remains a prevailing one and the sector has largely been left to forge its own path. But forge it, it has, and the report is testament to proving how much BTR has evolved despite still being a relatively nascent part of the industry.
Who lives in Build-to-rent?
BTR meets the needs of the many rather than the few. Residents living in BTR developments typically earn between £19,000 and £33,000, they work in a variety of sectors including the public sector and are most commonly aged between 25 – 34 years. Yes, they enjoy extra amenities not found in the traditional private rented sector but, crucially, these amenities are available to anyone living in BTR, whether you are renting at full market price or whether you are renting a home at a discounted market rent. The sector prides itself on providing a unique and unparalleled renting experience.
“Developers are invested for the long term, keeping residents happy is core to their business model and the provision of longer flexible leases provides greater security for residents helping them to not only grow their families but also to grow as part of a community.”
So, who loves BTR? Well, whilst it’s clear that not everyone ‘gets’ BTR just yet, there are plenty who do. The sector has shown itself to be resilient and it is that resilience that will enable its continued growth and evolution. BTR is not a flash in the pan, it has a hugely important part to play within the broader housing industry providing not only secure and well managed homes but also the homes that London so desperately needs.