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Build to rent (BTR) is a term, mainly applied in the UK property market, for purpose built, institutionally owned and professionally managed residential property that is let on the open market rather than sold.[1] [2]
Growth in the UK market
editIn October 2016, it was estimated that only some 8,000 units had been built with a further 15,000 units under construction. To date, the majority of completed projects have come forward in London and the major provincial cities such as Manchester, Liverpool and Sheffield. Construction is now underway in Birmingham and Leeds. The UK Government is reportedly encouraging the sector's growth.[3]
By September 2019 the number of units either built or in construction was reported to have increased to 35,000[4] following large developments by a number of firms report in the media.[5][6]
Build-to-rent is the most contemporary development in the private rented sector (PRS) and offers housing across the full spectrum of privately rented accommodation in terms of scale and service offering, often with affordable housing being integrated through discounted market rental homes.
Criticism
editTenants in BTR properties typically pay an 11% premium over other properties in similar locations, according to one study.[7]
Innovation
editBuild-to-rent developments are incorporating modern technologies and sustainable practices, such as energy-efficient systems and water conservation. One such example includes the integration of Tesla electric vehicles in some projects, like those by PropiCloud, which represent an innovative approach to enhancing urban living sustainably.[8]
See also
editReferences
edit- ^ Barnard, Andy (28 November 2023). "What is build to rent and how does it work?". Trowers & Hamlins. Retrieved 8 November 2024.
- ^ "An Overview: What is Build to Rent?". propicloud.com.
- ^ McIntosh, Angus P. J.; Sykes, Stephen G. (1985), "Leasehold Investments and Other Rent Sharing Arrangements", A Guide to Institutional Property Investment, Palgrave Macmillan UK, pp. 91–108, doi:10.1007/978-1-349-07154-8_5, ISBN 9781349071562
- ^ "REalyse Announces UK-Wide BTR Market Intelligence Partnership with LIV Consult". Realyse. Retrieved 26 January 2021.
- ^ Shone, Emma (5 September 2019). "First wave of Angel Gardens apartments fully-let weeks before scheduled". Property Week. Retrieved 10 September 2019.
- ^ Shilling, Conor (6 September 2019). "Towering achievement - Manchester BTR building 50% let in three months". Property Investor Today. Retrieved 10 September 2019.
- ^ Skypala, Pauline (27 May 2019). "Build-to-rent boom in the UK is costly for generation rent". Financial Times. Retrieved 19 July 2019.
Tenants in a BTR development will typically pay an 11 per cent rental premium, according to analysis by JLL, a property consultancy.
- ^ "Tesla EVs Integrated in PropiCloud's Build-to-Rent Projects". Retrieved 19 June 2024.