Family families

Build-to-rent sector must build more houses to cater for families

Build-to-rent is a booming market, with 105,000 units currently either complete, under construction or in the pipeline across the UK. But almost all of these are flats rather than houses, meaning limited options for families.

When build-to-rent (BTR) housing schemes go on the market, they are snapped up by investors at record speeds compared to flats, according to a report by Savills. This is because there is a huge discrepancy between the number of people – both investors and tenants – on the lookout for BTR houses and the number of developers making them.

The number of households in private rented sector (PRS) accommodation in the UK has climbed in recent years to around 4.7 million according to the most recent English Housing Survey, while the number of renting families with children has risen by almost one million and now makes up 38% of all PRS households.

Non-traditional build-to-rent

However, just 10% of BTR homes currently in the pipeline are houses, with the rest made up of flats, which indicates the sector may not be accounting for a large demographic of potential tenants. London, where space comes at a premium, dominates the BTR market, with 59,271 units compared to 45,943 across the rest of the country, according to the British Property Federation, which could explain the dearth of family homes being made available in the sector.

The needs of the tenants of such properties would differ from the more traditional BTR homes, which tend to be in very modern, centrally located blocks of flats with facilities such as gyms and concierge services. BTR family houses could be built further out into the suburbs, with more of a focus on local amenities such as shops and schools, as well as parking facilities and creches.

Savills said: “Letting rate evidence shows that houses on the edge of towns and cities can let just as quickly as inner city flats. There’s a deep market for renters who want more space in properties located close to national road networks.”

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

STAY AHEAD OF THE MARKET

Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT