Over the last 20 years, we’ve seen the rental sector double in size. According to the English Housing Survey, an estimated 19% of households are now renting privately, accounting for over 11 million people in the UK. Until recently, build-to-rent (BTR) primarily focused on high-rise apartment schemes in the larger cities like London, Birmingham, and Manchester. Now we’re seeing the Single-Family suburban model gain popularity amongst housebuilders and investors alike, focusing on the less ‘traditional’ areas away from the city.
The needs and wants of tenants have significantly changed over the last 18 months, heavily influenced by the pandemic. Additional green space, easy access to local amenities, and a bigger emphasis on home working are just a few of the key trends we’ve seen across the sector, trends for which BTR is perfect. This, paired with the increase in demand, has seen a bigger focus on the more suburban single-family BTR.
BTR caters to a wide variety of investment models, and today’s landscape for rental investment has significantly changed. As we see demand continue to increase, we also see an increase in the need for rental homes to be built at scale and at pace. At Wise Living, we believe a forward fund approach is most beneficial, not just for investors, but also for the developer partners we work with who need to see this as an attractive proposition and a way to fuel growth and improve financial performance.
Looking at the housing crisis, there’s not just one sector/approach that will ‘solve’ this – collaboration and strategic partnerships are fundamental to improving the sector. Purpose-built BTR can be delivered much faster than other forms of housing. Compared with open market developments, investor capital can be deployed and start generating returns much more rapidly. Whether it’s delivering developments solely for BTR or BTR being part of larger mixed tenure sites, it’s a crucial piece to the housing crisis puzzle.
Partnering institutional investors with BTR experts benefit all those involved. Companies can offer services and solutions by merging talent, expertise, technology, and shared values. Partnerships are key to better serving the private rental sector &, driving better living standards for our tenants. Tenants will benefit from the strengths and offerings each company brings to the table, whether that’s the design and structure of their home to the community aspect of living on a well-managed development.
The way we structure and fund deals mean we can forward fund the development right from the off, which can have a real positive impact on appraisals, costs, and much more – giving our partners a secure exit for all or part of sites. You need to choose the right partner to make suburban BTR work, so let’s chat!