Build to Rent (BTR) is quickly becoming a popular concept in the UK property market.
These homes are professionally managed and come with amenities like gyms, communal areas and workspaces. As a housing model, it is totally reshaping the UK rental market, providing renters with more options to choose from. But is Build to Rent the right choice for you? Let’s find out…
What Is Build to Rent?
Build to Rent is a term used to describe housing developments that have been designed for long-term rentals rather than being sold on. Unlike buy-to-let properties owned by private landlords, Build to Rent properties are managed by companies and investors.
The buildings are created with this in mind, usually coming with communal spaces and on-site maintenance that makes the experience smoother for those living there.
As the UK is home to a huge number of renters, this sector is helping to provide more housing options in urban areas like London, Manchester and Birmingham. These properties often have modern designs, communal spaces, and special services to appeal to renters.
Key Features of Build to Rent Properties
Purpose-Built Communities
Build to Rent developments are designed to build a sense of community. From shared lounges and workspaces to on-site gyms and social events, these properties go beyond just offering a place to live.
Professional Management
A single landlord or property management company looks after the entire development, this means renters can expect a high standard of care and quick responses to maintenance requests or complaints.
Longer Tenancies
Build to Rent properties usually offer tenancy agreements of three years or more, providing greater security for renters who want to settle in a certain place. However, shorter tenancy options are also available if they want more flexibility.
Modern Amenities
Many of these properties come with amenities like gyms, rooftop terraces, bike storage and concierge services. Superfast broadband and on-site management also help to make it a very pleasant experience.
Affordable Housing Options
Government guidelines in the UK say Build to Rent developments must allocate at least 20% of their units at an affordable price, usually at a minimum 20% discount compared to market rates. This means some of their units are likely to be more affordable, without compromising on quality.
The Benefits
High-Quality Homes
Properties are designed to meet high standards, giving renters well-maintained, stylish homes. The focus on quality means renters can expect a comfortable living experience with everything they need at their doorstep.
Stability and Security
With longer tenancy options and clear rent structures, Build to Rent gives renters a stable housing option. This is especially appealing for families or people looking for long-term accommodation, such as those studying in the UK for a few years.
Sense of Community
From communal spaces to organised social activities, Build to Rent developments are designed to encourage socialising among residents, giving them a stronger sense of community.
Convenient Living
Having on-site management and a single point of contact makes issues much easier compared to dealing with private landlords or letting agents.
Are They Worth It?
While Build to Rent properties come with a number of advantages, they’re not without its drawbacks. Here’s what you should think about before committing:
Cost
Build to Rent homes often come at a premium. With added services and amenities, the rent can be higher than other properties on the private rental market.
Limited Availability
Though growing, Build to Rent is still a small percentage of the UK’s rental market. Most developments are in major cities, which might limit options in smaller towns.
Saving for Homeownership
For those hoping to buy a home in the future, the higher rent costs might make it harder to save for a deposit. Think about your rental budget first, and then ask yourself if this is an option you can afford.
How Does It Differ From Buy-to-Let?
Ownership: Build to Rent developments are owned and managed by institutional investors, while buy-to-let properties are usually owned by private landlords.
Community: These developments focus on creating communities with shared spaces, which is rare in buy-to-let properties.
Management: Professional on-site management means consistent service and issues being dealt with quickly. This is different from the variable quality of service in buy-to-let homes.
Is It The Future of Renting?
The sector is quickly growing in the UK, with over 250,000 homes either completed, under construction, or in planning stages as of 2023. As rental demand continues to grow, these properties give city-dwellers a modern, well-managed alternative to traditional rentals.
Should You Consider Build to Rent?
Build to Rent gives renters high-quality housing with professional management and a sense of community. While it comes with a higher price tag, the benefits of longer tenancies, modern amenities and reliable service make it an attractive option for those that can afford it.
If you’re considering it, weigh the benefits against your budget and long-term goals. Whether you’re a young professional, a family, or simply looking for an easy rental experience, Build to Rent could be the solution you’ve been searching for.
Looking for A Rental Property?
If you’re looking for a London rental property, get in touch with the team at J Property Management, we have hundreds of properties on our roster waiting for tenants like you. Email us at info@jpropertymanagement.co.uk
