The Build-to-Rent market comprises of large-scale purpose built developments specifically designed for long-term rental occupation. The market is predicted to grow by over £50BN in the next 5 years.
The developments aim to support the UK housing crisis and ‘generation rent’ whereby millennials are unable to get on the housing ladder.
Built with the resident in mind, tenants benefit from flexible tenancies that often include utility bills, no lettings fees, modern features and added amenities such as a gym and residents lounge to promote a community feel.
As they’re managed by a professional company and come with added extras, there is a 10-20% rental premium on the units making them more expensive than renting via a traditional landlord.
Build to rent developments are extremely attractive to investors and developers as they can provide a relatively safe and steady cash flow when done right.