As a leading UK build-to-rent investment company, Select Property Group has been developing and delivering properties in the sector to its global investors for the last five years.
Below we’ve outlined some of the key things you need to know about build-to-rent investments.
Quite simply, build-to-rent homes are modern properties that have been specifically designed to be used by tenants.
Over the last 20 years, property priorities for tenants have changed and, thus, rental homes have had to adapt to these changing demands.
For many, renting is now a lifestyle decision, not a reluctance. Renting is the preferred way of living and, therefore, settling for inferior rental homes is no longer an option.
They will pay a premium to access the highest quality homes, the best locations and finest communal facilities.
By creating homes purpose-built for tenants, developers can deliver properties that will be the most attractive in the rental market.
Build-to-rent developments are typically found in key UK city centres. Living spaces are large and modern, while the wider development will boast a range of communal facilities that are highly desirable among tenants.
These can include amenities such as on-site gymnasiums, co-working spaces, cinema rooms and more.
In many ways, build-to-rent is the natural evolution for the buy-to-let property sector.
For a generation, buy-to-let was the only rental solution in Britain.
Residential homes, originally built for homeowners, moved into the rental sector and repurposed for tenants. In some cases, multiple tenants under the same roof.
These homes are often old and susceptible to the common problems that naturally come with ageing buildings.
Buy-to-let properties are frequently located in the suburbs of the city, rather than its centre. For young workers – the demographic that makes up the largest proportion of the UK’s rental market – this meant living on streets surrounded by families and older residents, adrift from the heartbeat of the city.
A product not designed for the needs of today’s tenants.
According to Knight Frank’s 2019 tenant survey, the key things renters in the UK want are:
Build-to-rent’s qualities mean it is the only sector than can satisfy most things on tenants’ checklists.
Modern, purpose-built rental homes. Central locations. Quality amenities.
In recent years, it’s become one of the fastest growing property sectors in the UK. By 2025, rental demand in the UK is set to reach six million people.
And, for many of these people, build-to-rent will be the accommodation of choice.
“Unlike its predecessor, build-to-rent is designed for the end-user. If your property offers the things demanded most by tenants, it will always remain attractive. And if it makes them happy once they’ve moved in, they’re less likely to move out.”
CEO, Select Property Group
2020 was the year when build-to-rent qualities became more in-demand than ever before.
Tenants spent more time in their properties than they might ever have done previously. Over half of the UK population’s working habits changed, with many working remotely away from the office.
For many, where once their rental property was a base – a place simply to sleep and to spend a few hours of an evening – it has now become their 24/7.
It has become their home.
A Savills survey in April 2020 revealed:
All of these features are synonymous with the type of build-to-rent residential projects that developers – such as Select Property Group – are building in UK city centres.
These are also qualities that will become the norm for UK tenants. Data from the Guild of Property Professionals suggests that over two-thirds of UK workers will now be working from home on a permanent basis.
Build-to-rent was already becoming the strongest residential proposition in the UK. One just at the very start of an exciting cycle of growth.
It’s been the natural move for global investors, too. Here at Select Property Group, our clients based in our key international territories – including the GCC and Southeast Asia – are already familiar with some of build-to-rent’s key fundamentals:
This, coupled with an increasing number of tenants now likely to be drawn to build-to-rent’s qualities, means it’s one of the strongest long-term investments you can make.
Here are some of our latest build-to-rent developments in the UK:
Breathtaking design. An icon on the skyline. The finest residential homes in the city.
The Blade, Manchester will raise the benchmark for apartments in the city. Subtle design and elegant finishes merge to create premium living spaces. Impressive communal facilities and immediate access to expansive green space also provide the amenities and outdoor space tenants are demanding more than ever.
The latest project from Select Property Group’s luxury build-to-rent residential brand, Affinity Living. Located in one of Manchester’s most exclusive new city centre neighbourhoods, Affinity Living Embankment West won the prestigious Residential High-rise Development UK award at the 2019/20 UK Property Awards.
Outstanding communal facilities. Contemporary apartments. A prime location in Manchester’s central business and retail district. Affinity Living Embankment West delivers on all the things tenants in Manchester are looking for from a build-to-rent development:
Final phase apartments available, with prices starting from GBP 386,669.
Find out more about Investing in Affinity Living Embankment West, Manchester.
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