Build To Rent

Build to rent – a new concept for a new generation

How will Build to Rent affect the UK’s growing number of renters? Well, the UK’s property market has long been characterized by demand high demand for residential rental property, soaring property prices which have outpaced the rate at which salaries have risen, there is a large proportion of the market, who simply cannot afford to buy and get on the property ladder. This trend is becoming more apparent and in 2015, a survey has indicated that 30% of people aged between 21-30 believed they would never own their property. Deposits for the average first time buyers have risen 88% since 2006. This has led to renting becoming a life-style choice, and the new ‘generation rent’ who are priced out of buying their own homes, are opting to rent in central urban areas and demand high spec finishes and the latest specs. The UK Private rental sector is evolving and the build to rent  property model is providing a new housing model for the new generation.

Build To Rent – A Long Term Rental Solution

Historically, living in rented accommodation was seen as a short term solution typically before moving into a home that was bought or when. However, as the property prices have continued to grow, home ownership is often out of reach for the next generation entering the market. Due to un-affordability, renting is now being regarded as a more of a long term or permanent housing arrangement. With this change comes a change of demand within the rental market. The new rental generation are not satisfied with old terraced houses in sub-urban areas, with the commonly occurring problems, leaky plumbing, dated kitchen and bathrooms and rising damp. The new generation are demanding highly accessible accommodation, in central urban areas containing the latest mod cons and modern finishes. The new Build to rent model offers the new generation the type of accommodation that fits their lifestyle and requirements.

Build To Rent Scheme

The Build to Rent scheme was launched in 2012 as part of a series of government initiatives to increase the supply of high quality homes available for market rent in the private sector. Build-to-rent new build apartments, provide a long term accommodation solution for today’s tenants. Offering accommodation that is in line with current life styles and expectations than dated buy-to-let housing. It has been well documented that many of the old fashioned, buy-to-let homes are poorly maintained by rogue landlords, which provides the rental market little choice in areas where accommodation is limited.

Built To Rent’s Positive Outlook

The emerging build to rent investment sector, is regarded as the future for the UK property and lettings market and will help to solve the problem of limited housing stock in the UK. Now for the first time homes are being built for the specific requirements for long term rental market. Knight Frank has recently stated that they view the build-to-rent to be worth £50 billion in the next four years, which demonstrates the outstanding growth in the emerging sector.