The UK Build To Rent Market Is Set To Grow By A Factor Of Five
Approximately 8% of UK rental properties will be Build To Rent homes over the next decade. This represents a fivefold increase from now.
The entire concept of Build To Rent is to use long-term institutional finance to fund residential developments (typically apartment buildings) with the sole purpose of serving the private rental sector.
BTR is making a crucial contribution to meeting the supply of new homes in the UK, but over the next few years, the competitive landscape of the private rental market will change significantly.
You will see new apartment building blocks are sprouting up all over the UK, which are, more or less, the same format. Notably, the Olympic Village in London, built for the 2012 Olympics and then operated in this manner for private renters, was a turning point for the build to rent industry in the UK. Since then, the purpose-built student accommodation revolution has played itself out more recently in university towns.
Regardless of what you think about institutional money staking a claim on where people might live in the future, it’s a strong asset class that cannot be ignored and is here to stay…
