Can ‘Build to Rent’ solve the UK housing crisis?
The British Property Federation's Build to Rent (BTR) Q3 2022 report indicates that the sector has experienced a 15% year-on-year growth, with more than 240,000 homes in construction or completed. Initially tailored towards Gen Z and Millennial generations, this BTR model is projected to be highly successful.
Mortgage rates and the economy undoubtedly impact people's decisions to rent, but it is also part of the bigger picture. Younger generations are more likely to prioritise flexibility when choosing where they live, which has also contributed greatly to this trend.
The Build to Rent industry was initially concentrated in urban areas in the UK; however, regional growth has now surpassed that of London. A staggering 20% increase is reported by the British Property Federation's Q3 2022 statistics, as compared to only 7% in the capital. This huge expansion can be attributed to Britain’s private rented sector demographics shift. According to figures found on The English Housing Survey 2022, there has been an impressive 93% surge of households renting privately over the last 15 years, while owner-occupied dwellings have increased by merely 3%.
What does Build to Rent offer?
Build to Rent is a new model of privately rented housing that has taken off in the UK. It is an answer to the growing demand for more housing, particularly in suburban communities. Build to Rent developers build large-scale developments with long-term tenancy agreements and high-quality facilities such as gyms, saunas and communal areas. This type of development offers tenants a secure home in an amenity-rich environment while providing investors with attractive returns on their investments over the long term.
With Build to Rent becoming increasingly popular in the UK, it could be the solution to meeting our ever-growing housing demand.
It is important to note that the scheme can only benefit from increased governmental support if we are able to ensure the quality of Build to Rent developments. This means that stringent checks need to be in place to guarantee the safety and security of residents, as well as ensuring these developments are built with sustainability and energy efficiency in mind.
Overall, Build to Rent has become a major success story for the UK housing market, providing an attractive solution for tenants and investors. It offers tenants secure long-term tenancies in amenity-rich environments while providing investors with good returns on their investments over time. However, it is important that the concept is implemented with the same stringent safety and sustainability standards as other forms of housing in order to ensure that build to rent is a long-term success.
Build to Rent has provided the UK housing market with a valuable solution to our ever-growing demand for housing, particularly in suburban communities. It provides tenants with secure homes and investors attractive returns on their investments, but only if implemented correctly. As build to rent continues to grow, it is important that we do not forget about its core values of safety, security, and sustainability. Only then can it be a viable option for everyone involved.
Key facts on Build to Rent
This sector in the UK housing market is seen as a potential answer to increasing demand, particularly in suburban areas. It involves larger-scale private rented housing managed professionally, providing rental accommodation for longer terms and offering stability for tenants who would normally have difficulties finding secure long-term residence.
This method of building also has benefits for landlords, being less hands-on than traditional private renting while still providing financial rewards. In addition, it can provide an economically viable solution for those looking for homes and investment opportunities.
The Build to Rent sector has seen significant growth over the past few years, with plans for more projects being announced on a regular basis as demand continues to increase. With Build to Rent schemes offering an innovative solution to increasing housing demand, they will likely continue playing an important role in helping meet UK housing needs.
By continuing to invest in Build to Rent projects and promote their benefits, we can ensure that our suburban communities continue to remain strong and provide a secure home for generations to come.
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