In the last decade the UK property market has seen an under-supply of property to alleviate the shortage of homes. More importantly there is specifically a shortage of affordable homes in cities. With the passing of time, increased demand for high quality homes and changes in customer behaviour a new asset class has quietly risen to becoming a serious solution to the housing crisis.
Step in Build-to-Rent! The “little brother” to the US’s highly mature multi-family proposition, and a more sophisticated PRS (Private Rented Sector) product.
Build to Rent (BTR) has seen the number of homes in cities like London, Manchester, Birmingham, Leeds, Sheffield increase considerably in recent years. In 2013 – The GET LIVING East Village development introduced over 1500 homes to the market. Not available for purchase, these properties upped the ante for private rented accommodation in East London. For years customers have had to deal with dodgy landlords, unscrupulous estate agents, onerous rental agreements and hefty deposits. Not any more – the new class of rented accommodation was promising and is delivering on its promise to disrupt the PRS space.
A community driven approach, professional management, hospitality style amenities – all with a certain degree of flexibility.
Build-to-rent is the new champion alleviating the housing shortage whilst providing a better rental product and helping Investors and developers turn their development projects into long term income generating assets.
A perfect solution whilst the for-sale market has dropped off, and developers facing challenges on achieving their pricing. A win-win for everyone.
Renters are using Build to Rent as a short to medium term stop-gap to eventually climbing onto the elusive property ladder, which has gotten significantly more difficult and expensive to get onto. From the early signs, it appears the typically Gen-X and Gen-Z renters may just be deciding that rental on a long term basis is a practical and affordable solution to live in the city – and thus BTR has truly come in to offer a great solution to the housing crisis in the UK.
As Build to Rent Interior Designers and champions of the industry – TEN London is committed to being an integral part of this solution, creating attractive interior design and strategizing on behalf of investors, developers and operators on all matters concerning future of living in the UK.
