The Build to Rent (BtR) sector is set to be one of the key housing trends of 2022, according to UK rental guarantor service Housing Hand.
As renters return to cities and embrace the urban lifestyle once more, Housing Hand said developers and investors are racing to meet their needs through a range of creative new schemes.
James Maguire, head of sales and business development, Housing Hand, said: “2022 will be the year that the Build to Rent sector finally comes into its own, as the market matures in multiple ways. It is perhaps unsurprising that tenants are embracing the opportunity to live in homes designed to give them a superior living experience. And this demand is driving developers and investors to build more and more BtR homes – as is the fact that tenants in these properties often stay for longer and pay higher rents.”
Research by ideal flatmate looked specifically at the cost of Build to Rent accommodation compared to renting privately in a buy-to-let property. The data showed that Build to Rent was on average 15% more expensive. But with added extras such as roof gardens, gyms, resident lounges and plenty more included, and often the price of bills too, it’s fair to say that BtR residents usually get more bang for their buck.
Housing Hand is keen that the premium price tag that Build to Rent homes tend to command shouldn’t be a barrier to renters. This is also where the company’s Depositless renting service comes in. Available as part of the Housing Hand guarantee, it enables working professionals and students (both domestic and international) to move into a Build to Rent home without needing a deposit – and they can even pay the fees for the service monthly.
Already established as a leading rental guarantor service, Housing Hand is now offering Depositless renting as a means of making the UK rental sector more accessible. The service provides landlords with the assurance that they won’t miss out on any rent payments, even if the tenant defaults, while allowing a broader pool of renters to access BtR homes.
Graham Hayward, chief operating officer, Housing Hand, added: “The Build to Rent sector is growing faster than any other property rental sector. As it expands, it becomes even more important to break down barriers to renting and make access easier and quicker for all concerned. We have a track record of delivering in this arena and have already entered into a number of key partnerships as this continues to be a top priority for Housing Hand in 2022 and beyond.”
The data certainly support the assertion that 2022 will be a big year for the BtR sector. According to Savills, investors poured nearly £420m into UK Build to Rent in Q3 2021. Activity in the sector means that the future pipeline now stands at 99,500 homes. A further 42,000 are already under construction. All told, the sector has 205,500 homes either in development or already complete.
Terry Mason, operations director, Housing Hand, concluded: “The Build to Rent sector is maturing as it grows. Investors are entering into partnerships with developers to fund long-term BtR plans. Renters’ expectations are also maturing, with BtR residents enjoying the wider choice of homes and amenities that the increasing number of developments offers. We’re seeing this particularly outside of London, where regional BtR markets are coming into their own.”
Cities such as Manchester, Liverpool and Brighton are attracting plenty of investment in BtR schemes, according to Savills. So much so that it is homes outside of London that are driving the construction pipeline. The year to Q3 2021 saw construction begin on 12,000 Build to Rent homes in the regions – the highest such figure on record.
