You might have heard market experts and estate agents talking about build to rent, but what exactly is it? Today we help explain what build to rent is and why it benefits both investors and tenants.
The London property market is one of the most stable markets in the world – even including the stock and currency markets – which is why both national and international investors are drawn to the capital for strong long-term investment opportunities.
Build to rent explained
Build to rent developments are ones that are owned by institutions like banks and pension companies. The properties are then let through an agent like Foxtons, who takes care of the whole letting process.
Unlike the traditional private rental sector that comprises mostly landlords with one property or a small portfolio, the build to rent sector is still a developing market. And while we typically think of landlords being an individual, in this case, the landlord is an institution.
What are build to rent developments like?
Build to rent developments are designed for renter lifestyles, not for homeowners, and include a number of facilities that reflect their requirements.
Some examples include communal living spaces, such as games rooms and lounges that encourage tenants to socialise with each other, as well as gyms and concierge services, ensuring every resident’s need is catered for.
Not only do the investors provide good-quality living space, they also create an aspirational residential community that reflects the local area in which they are located. The properties and shared spaces are designed with a high attention to detail and the fixtures and fittings, such as underfloor heating, meet the demands of today’s renters.
Long gone are the days of tenants living in small, dingy, unmodernised properties just to be in the centre of all that’s happening in London – which means that landlords and developers have had to up their game when it comes to the finished product.
How does build to rent benefit tenants?
As a tenant, you’ll benefit from secure long-term renting options – remember, build to rent investors are in it for the long haul and are looking to benefit from London’s strong property market over time, both from the rental yield and capital appreciation.
Tenants also benefit from good-quality housing that is managed by professionals, who will be able to respond to any issues quickly, as there is no landlord – or who we would traditionally consider a landlord.
