Build to Rent
The build to rent market is currently one of the most resilient sectors of the property industry. But what does the term mean? The BTR market isn’t quite a household name here in the UK, unlike our neighbours across the pond. Here we look at the meaning behind the term, and how the market is developing within the UK.
Where did Build to rent come from?
Build to rent (BTR) is a relatively new sector in the UK housing market. The term comes from Europe and North America, where it is known as ‘multifamily housing’. This new sector fills a gap in the market for high quality rental housing. This new type of housing is owned by investors and usually managed by agents. Essentially, the basic difference BTR provides over the traditional ‘buy to let’ is a focus on service. These purpose-built new developments offer on-site management, amenities, and shared spaces such as residents lounges and fitness centres.
The future of BTR
Although Covid19 tore through the UK economy, the BTR market is seeing substantial growth. This is mainly because a large proportion of UK landlords have little management experience and a lot of rental properties in the UK are not designed for renting. Ultimately, these properties were purchased by landlords to rent out (‘buy-to-let’), which has a lesser focus on service. However, seeing a gap in the market, professional landlords are starting to cater for Britain’s growing rental market. There are UK projects such as a 440-apartment project in Birmingham and 278 new homes in west London. At present, there is a pipeline worth around £1.4bn! And, while Covid19 has impacted the BTR market, future investment is almost guaranteed to return growth back into the sector.
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