The attractiveness of build-to-rent property is on a constant rise, especially with rental prices forecast to continue their growth and levels of supply dropping further.
Build-to-rent is the single biggest sector in the future of the UK’s property market. The property market’s tower of strength, build-to-rent was forecast to see floods of investment coming its way. This was mainly due to the simple fact that there was a loophole in the regulations for the new stamp duty tax changes. Then Chancellor Osborne announced that build-to-rent wouldn’t be excluded from the new surcharge.
So why would we say that build-to-rent is the way to go? For three very simple reasons.
1. Low cost, high value
Ever since the additional stamp duty charge came into force in April the property market has become more expensive for investors. Build-to-rent, however, is often priced below market value and high yielding.
Investing in off-plan, build-to-rent property means the deals you are getting are will be cheaper than “traditional” property. This little perk might – quite possibly – cancel out the extra costs the new stamp duty rules made you pay. It will make your new property a working investment.
Investment bears risks. This shouldn’t be news to any investor. It always did and it always will. And with the Government seemingly clamping down on buy-to-let investors, it’s more than understandable for fears to grow.
Build-to-rent makes that fear shrink again . Many developers offer guaranteed or assured return over a certain period of time, taking away the fear that’s present in any investor. They give trust.
Homeownership is becoming less popular in the UK. Generation Rent is growing and they appear mostly happy to do so, which may potentially lead to long-term rental stability, similar to countries like Germany.
The number of homeowners dropped from 66% in the 1990s to only 62.5% currently. This means more and more people are becoming comfortable with the idea of renting their accommodation, even with the economy improving.
Build-to-rent is everything renters are looking for Ludlowthompsonhttps://www.buyassociation.co.uk/news/generation-why/: a well located property that suits their lifestyle and covers their needs.