The UK property market is comprised of multiple sectors that include buy-to-let, off-plan, new build, and an up-and-coming trend that’s picking up a lot of attention and interest called Build-To-Rent.
What is Build-To-Rent and why is it gaining a lot of notice now from buyers, property investors, and even local city and borough councils?
A Growing Sector With Roots In The 2012 Olympics
A Build-To-Rent home or flat (or, BTR) is a property development that is designed with the sole purpose of catering to the rental market.
Build-To-Rent properties aren’t new; they were first introduced in 2012 as part of the legacy programme implemented after the London 2012 Summer Olympics. This programme outlines the repurposing of Stratford’s East Village from athlete’s accommodations into private rentals.
Compared to the traditional Buy-To-Let sector, BTRs take away the hassle and grind that landlords and property investors go through managing their properties because these will be handled and managed through property management companies. Something that property investors would find very beneficial.
Gladfish Property Investment Ltd., a property investment and portfolio management company, employs this method wherein its property investors enjoy effortless management because their properties are being handled through its property management arm.
A Fast-Rising Trend That’s Satisfying The UK Rental Market
BTRs are exactly what the growing rental market needs: high-quality rental homes for single professionals and families relocating to live and work in urban areas and city centres. The demand for rental housing is particularly high this year, not only in London but in many regions around the country, particularly in the North and North West.
British Property Federation Confirms Growth In Analysis Paper on BTRs
The British Property Federation (BPF) published an analysis paper showing that the Build-to-Rent (BTR) sector is not only growing but is also fast becoming a leading sector in the UK housing market.
Initially, BTRs attracted minimal attention and while many BTR properties were developed, these were backed by the UK government and its Home Building Fund.
Fast forward to 2019 and BTRs have caught the fancy of major developers and of local councils who want to include BTRs in their local plans as a way to meet the needs of the growing population in their respective areas.
Developers have poured institutional investments into BTR projects across the country, amounting to £1.7bn in the first half of 2022 in areas like Bristol, Birmingham, and Edinburgh, to name three of the biggest hotspots to date. These deals are expected to reach more than £4.5bn by the end of the year.
“Our analysis for the second quarter of the year further underlines just how rapidly the UK Build-To-Rent sector is expanding,” stated Ian Fletcher, Director of Real Estate Policy, British Property Federation.
“We can see a broader spread and increased presence of BTR across the country, with more local authorities including it in Local Plans and considering it a vital component of future housing supply. This shows the market maturing beyond London and major regional city centres to towns and suburban locations and BTR becoming very much part of a more diverse and futureproof UK housing market.”
How Do Property Investors Benefit from Build-To-Rent Properties?
At the surface, it may seem that only tenants would reap the benefits of BTRs becoming more prevalent in the market (affordability, ease of renting/tenancy, and proximity to work and other essentials). What about the landlords and property investors?
Property investors can expect to find BTRs more to their liking than the more traditional Buy-To-Let scheme. How? BTR properties are self-managing.
This property management setup is something that Gladfish Investment Property Ltd. knows very well. Gladfish specialises in off-plan and new build properties like those in Birmingham where BTR properties are also being developed. Like BTR properties, Gladfish provides its property investors effortless property management for their portfolios through its Set and Forget investment strategy.Chat with our team today on 02079236100 to know more, or join us in our Free Live Masterclass to learn about our unique property investment strategies and how you can apply them when investing in BTR, off plan, and new build property investments in the UK.