Property developers are looking to profit from the growing number of private renters by investing further in purpose-built rental accommodation.
The Build to Rent model has given housebuilders a new way to make money from Generation Rent, which largely explains why the sector is forecast to become a key growth area in the housebuilding market.
Including residential conversions, there were around 258,000 new dwellings delivered across the UK in 2016/17, up by 13% on the previous year, according to the ‘Housebuilding Market Report – UK 2018-2022’, which has recently been published by AMA Research.
For 2017/18, it is estimated the rate of growth has been similar, with 280,000 new homes being added thanks in part to purpose-built private rented housing (Build to Rent).
As well as attracting some of the larger housing associations an increasing number of larger private housebuilding groups are also diversifying into Build to Rent, usually in partnership with private investors.
To achieve desired rates of return, the focus of their investment is on large-scale apartment developments - in key parts of London, the West Midlands and the North West – which offer economies of scale.
As with purpose-built student accommodation (PBSA), this is mainly being achieved through the increased specification of prefabricated building components and even full offsite building systems such as volumetric modular construction.
Separate research by the British Property Federation (BPF) earlier this year also found that there has been a significant increase in the number of Build to Rent homes complete, under construction and in planning across the UK.
In the UK there are now well in excess of 100,000 Build to Rent homes across all stages of the development lifecycle.
Ian Fletcher, director of real estate policy at the BPF, said: “The Build to Rent sector is evolving quickly, with significant delivery in the regions and more houses, rather than just apartments, coming forward.”
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"...volumetric modular construction." aka rabbit hutches
Isn't one of the complaints from the General Public that if there is a large concentration of renters then they do not form part of the community or contribute to it??
Prices will be higher than the PRS. Will they be available to those on U Credit or the lower income bracket. .
Will the houses be leasehold meaning you have to pay management fees.
I have a bank acc which I pay a monthly fee for extra little perks. I am thinking of closing it as I don't use hardly any of them and it's expensive.
I wonder if this will be he same? ie coffee lounge roof garden
It is my understanding that BTR now constitutes 2% of the PRS. Big whoop. The real story is how the traditional landlord still dominates the sector completely and provides the whole range of housing needed - and yet has been hammered by Government as though they have done something wrong - while BTR is feted and fiscally favoured.
The most expensive part of a property is usually the land its built on. The UK is notoriously useless at designing/building for future change in all sorts of industry but particulary in property. Germany.. They build to accomodate future family change, so generations of family remain in the same property.
I've been pondering an idea for many years (not rich enough to test it out) That a modular property can be built to accomodate a young couple and grow with them as they grow as a family.
This would also work with renting and the modules could be interchanged with updated modules as required whether they be additional rooms or refurbished rooms. Use of a crane, delivery on a lorry and a days work would for example refurbish a complete bathroom.. It's not that difficult if one thinks at the design stage.. Problem with British builders they do just enough to get a job done and any maintenance/change later is a major overhaul.
Interesting time lapse video on this page I think you might like... https://www.insidehousing.co.uk/home/home/tackling-homelessness-through-modular-housing-57640
Of course these will be considerably higher rents than small landlords so how will they ever be able to compete ?? simple exterminate the small landlord no small landlords no competition no comparison
And who do you think will be shareholders directors and highly paid consultants for these BTR multi million pound conglomerates could it possibly be MP's family members the bosses at shelter ,generation rent ? of course they are far to honest and selfless to do something so devious and underhand to line their own pockets
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