BUILD TO RENT

BTR properties are designed for the rental market, as opposed to home ownership. Rather than develop a residential block and sell apartments individually, all flats are owned by one landlord, producing a reliable and sustainable income stream. This benefits tenants, as their landlord is invested in ensuring common parts and amenities are good quality and well-maintained.

BTR arrived in the UK following the 2012 Olympics, when Stratford East Village was transformed from accommodation for athletes to private rental homes. Since then, developments have sprung up across the country, with many projects backed by the Home Building Fund and the Government. New development has been driven by increased demand from tenants as well as institutional investors looking to diversify their real estate holdings.

BTR developments often differentiate themselves from the wider private rented sector by creating communities via shared amenities and communal areas, including gyms, dining areas and games rooms. This distinction, along with additional services such as utilities packages, parcel collection and concierges, mean BTR schemes benefit from higher rents and higher tenant retention.

Families represent one of the fastest-growing renter demographics. As a result, ‘single-family’ BTR is a growing part of the sector, with housebuilders and investors creating homes for rent in suburban locations that cater to families better than more centrally positioned ‘multi-family’ developments.