It has been estimated that at full maturity, the Build-to-Rent sector could take over a third of the private rental market in the UK, with the sector set to experience enormous growth over the next five to ten years.
The research claims that although Build-to-Rent stock completed to date is currently worth less than £10 billion, at full growth it could grow to £550 billion, gobbling up one third of the private rental market that has a £1.5 trillion potential value.
Birth and growth
The birth of Build-to-Rent in the UK can arguably be pinpointed in 2012, when it was expressed that as part of the legacy promise at the 2012 Olympic Games, the athletes’ village would be converted into homes.
The development has provided nearly 3,000 rental homes in East London since then, inspiring others to follow suit and leading to the cropping up of large Build-to-Rent developments all across the UK.
With the government backing Build-to-Rent by pumping money into it, proclaiming it as the key to solving the UK’s housing crisis and also making Buy to Let increasingly difficult for landlords, there is no surprise that Build-to-Rent has developed as rapidly as it has.
In the last year alone, the UK sector has seen a massive 21% growth in comparison to the same period of the previous year, with there currently being over 148,000 Build-to-Rent homes completed, under construction or in planning. Five UK cities also made it into the top 20 European cities for Build-to-Rent investment.
What’s the appeal?
So what is it about Build-to-Rent homes that are attractive to a renter, ensuring that in this ever-changing landscape, the Build-to-Rent sector will be here to stay and grow?
With millennials looking like the first generation who will never own their own home, (what, with the eye-wateringly high property prices and it becoming increasingly more difficult to even save up the deposit to get on to the property ladder in the first place!) Build-to-Rent properties certainly hold a lot of appeal.
Some of the positive benefits for a renter include:
- They are high-quality homes, especially as most of them are new builds
- They tend to offer flexible, longer tenancies
- They have a professional management structure in place to provide much better support to renters than the more traditional renter/letting agent/landlord structure
- They generally offer a lot more for your money, with many important amenities such as Wi-Fi, bills, gym and parking included in the monthly cost, making life much simpler for Generation Rent
Discover amazing Build-to-Rent properties with Movebubble
Here at Movebubble we certainly see and know the huge benefits of living in a Build-to-Rent property. However, user behaviours show that many renters aren’t aware or don’t know much about these properties, which could, in fact, actually be their ideal home! We’re here to change that, making life easier for renters and agents alike.
Renters looking for beautiful, purpose-built Build-to-Rent homes in London or Manchester, will need to look no further once they’ve checked out the Movebubble app.
The Movebubble One section features top-quality homes designed specifically for renters who want to rent a stunning home but don’t want any of the hassle. Our user-friendly app makes it easy to search for Build-to-Rent homes; see the costs and all the amazing benefits that come with them, and even chat directly with the agent through the app itself.
Don’t say we don’t treat you! 😉
Build-to-Rent will need to step up
So, as you’ve read so far, the future of Build-to-Rent certainly seems very bright. It is estimated that the UK Build-to-Rent sector could be comprised of over 1.7 million homes at full maturity – an ambitious yet definitely reachable target, taking into account the current number of completed homes in the sector is 30,000.
However, in order to reach this predicted potential, a serious step up will be required from current delivery levels. Block sales to professional investors could be one of the most efficient ways of getting there.
We look forward to seeing how and when this all unfolds, and of course, serving thousands of Build-to-Renters through the Movebubble app for many years to come.