Build to Rent is taking over the property world, there is no doubt about that. Despite the pandemic, BTR is still growing in popularity with consumers, as well as investors, who have seen BTR as one of the key solutions to meet housing demand and combat soaring house prices. But why do BTR developments stand out in the market?
Change in lifestyle
With the unfortunate combination of the cost-of-living crisis, rise in house prices and the severe housing shortage, people can’t afford to buy a home. Particularly for younger age groups, more people are renting and shifting away from the traditional purchasing journey. Today in 2022, 41% of our research sample said if they were to rent, it would be in a professionally managed BTR development.
With both non-renters and those who rent from a traditional PRS landlord looking to make the switch, which just shows how this shift in lifestyle is in favour of this new sector. Plus, developers are more than willing to construct purpose-built homes to meet the ever-growing demand which is bound to be enticing to anyone looking for a new home.
“The growth of the Build to Rent industry in the UK is exponential. A huge group of people – 40.8% – say that if they were to rent, it would be in a professionally managed Build to Rent development and this is a number we expect to steadily grow over time. The figure is even higher for families at 43.9%.” – Jodie Wardell, Head of BTR
High-quality rental options
There is certainly a hunger for high-quality, well-managed rentals, especially in cities. Tenants do not want to sacrifice the quality of their home for a cheaper monthly rent. When we focus on people who live in cities, expectations are high, with 39.8% of them choosing a property with quality furnishings included and 41% would choose a property that’s move-in ready.
However, this high-quality experience doesn’t end at just good furnishings. BTR operators are offering perks such as concierge services, wellness areas, shared gardens and communal working spaces, which no doubt attract residents. Just by taking the time to understand how residents want to use their home, rather than just a place to live, really allows developers to offer the high quality rental experience that their target market is looking for.
Tenants want to find a place to call home, so it’s important that residents have the flexibility to turn their property into somewhere they can envisage living for a long time. In our recent survey, we were not surprised to learn that 70% of renters feel that the overall interior design of their home is important or very important. Despite the rental market often offering bland, boring interiors, BTR operators offer tenants the opportunity to place more of an emphasis on interior design. Quite often their space is decorated for them with a focus on modern and sustainable features, which has been designed with their needs in mind.
Sense of community
Community matters to tenants. Build to Rent developments offer residents the opportunity to spend time with their neighbours and make friends, all in the same building. These communal spaces can range from a shared garden to work-from-home areas, all of which will entice residents who are looking for that true sense of community. Of those who plan to move into BTR, 48.6% are likely/highly likely to choose one place over another (in the same location) if it has communal spaces.
BTR developments offer a step above the standards of your typical private rental flat. Our latest study is more than just statistics about BTR. From urbanites, to single parents and couples, we discovered what makes them tick. If you would like to learn more about our research findings, be sure to download the latest Hatch Insight E-Book, The Modern Renter.