Build to Rent
With one in five UK households now renting, there’s a growing preference for professionally managed and purpose-built homes, which has significantly boosted the Build to Rent (BTR) and co-living sectors.
Initially, the BTR sector’s growth was concentrated on multi-family housing in major urban locations, such as London, Birmingham, Manchester, and Leeds. However, the Single Family Housing (SFH) sector is rapidly gaining momentum, making up half the total BTR investment over the last year. Slower sales rates, the end of schemes (such as help to buy), higher interest rates and retractions in the traditional buy-to-let investment market have presented opportunities for investment. Housebuilders also recognise the benefit of multi-tenure schemes, and we’re seeing more partnerships between housebuilders and BTR investors. SFH can be delivered faster, increasing absorption rates, and forward selling can assist with cashflow of development costs (eg, s.106 obligations).