Build to Rent, often referred to as just BTR, is the construction of properties specifically for the rental market, which is different to the more common route of building properties for sale. BTR creates a long term business model in which income is generated over a period of time, rather than a one-off sale.
77,446 build to rent homes were in planning in 2019, which is a 23% increase on 2018.
The sector also aims to have tenants in these properties for a longer period of time, for example years rather than months. This model of long term stable income is an attractive offering and it’s no surprise to see some of the big names entering into the market.
35,760 build to rent homes were under construction in 2019, which is a 5% increase on 2018.
Some of the early entrants to this market are backed by long term capital, so they are able to commit to retaining the properties in the rental market. This sector also commits to giving good quality urban living options that are available long term, which helps to satisfy the demands of ‘generation rent’.
34,480 build to rent homes were completed in 2019, which was a 31% increase on 2018.
Build to Rent properties are specifically designed with tenants in mind and there are a range of different styles of properties often available. Occupiers also often have access to communal spaces such as roof gardens, meeting rooms, resident’s lounges and gyms. Most buildings often have on-site staff to assist with the day to day running of these properties and help to build a sense of community.
Currently the developments tend to be large and located in urban areas, however it is predicted that in the future these will also move to more suburban locations. One thing is for certain is that Build to Rent is a market that is here to stay.