Residential Letting and Management
Overview
Despite the relatively subdued last 12 months Build to Rent (BTR) is still very much a growing sector with developments continuing to offer high-quality amenities and services aimed at long-term renters. With ever increasing demand for rental accommodation, particularly among young professionals and families we do not see that momentum reducing.
The single-family housing market continues to expand at pace with the chronic undersupply in the rental market being exacerbated further as BTL landlords exit the space due to unfavourable lending and tax conditions. Those lending conditions are also resulting in housebuilders being more amenable to bulk sales something several of Allsop’s clients are taking full advantage of as they seek to build their investment portfolios.
Direction of Travel
Build to Rent (BTR) in the UK is poised for continued growth and innovation. Several key trends are shaping the future of the sector:
- Expansion Beyond Major Cities: While BTR developments initially focused on major cities like London, Manchester and Birmingham, there is a growing trend of expansion into secondary cities and suburban areas. Developers are identifying opportunities to meet demand for high-quality rental accommodation in emerging urban hubs and commuter towns.
- Diversification of Offerings: BTR operators are diversifying their offerings to cater to a broader range of tenants. This includes developing mixed-use schemes with residential, retail, and leisure components, as well as offering a variety of unit types to accommodate different household sizes and lifestyles.
- Focus on Sustainability: Sustainability is becoming increasingly important in BTR developments, with a focus on energy efficiency, green building materials, and eco-friendly amenities. Developers are incorporating sustainable design principles to reduce environmental impact and enhance the long-term sustainability of BTR communities.
- Technology Integration: Technology is playing a significant role in shaping the future of BTR, with developers leveraging digital solutions to enhance the resident experience and streamline operations. This includes smart home features, digital concierge services and online leasing platforms to simplify the rental process.
Who is Active/Headline Deals
SFH has been a particular hot topic over the last quarter with Blackstone’s acquisition of Sage Housing underpinning their confidence in the growth potential of the BTR sector. Pembroke’s acquisition of The Lark, Nine Elms, London SW11 (Allsop managed) was their first foray into the European residential market and we have seen a flurry of deals announced by Packaged Living as Allsop assist them with delivering a significant and growing pipeline of SFH schemes. We expect the forthcoming quarter to be even more active – indeed Allsop will launch 4 SFH schemes inside the next 3 months.