Posts with tag: build to rent

5 Priorities for Successful Build to Rent Properties

Published On: February 7, 2019 at 11:16 am

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There has been an increase in the number of private tenants in England, with 20% of all households now renting from a private landlord. Subsequently, build to rent properties, designed for long-term occupation, are on the rise.

There are many reasons why more people are renting, and for longer, in the UK, whether it be because of the changing and uncertain housing market, or the struggle to save for a home deposit.

Build to rent properties need to be designed with tenants in mind, and, thus, community and residence experience need to be considered carefully by investors.

To help, broadband and utilities provider Glide has put together its five top priorities to consider when investing in build to rent properties:

1. Understand your customer

With over a third (37%) of build to rent properties being occupied by young professionals, it is important that investors understand what they are looking for. All-inclusive bills are a high priority when choosing a place to live, according to over half (52%) of millennial movers. Any other ways to save time and make things as convenient as possible for your tenant, such as parcel storage or dry cleaning, are also desirable.

As many young professionals commute to work, it is a good idea to consider this when choosing areas in which to invest. According to recent research, two in five (40%) of those without children factor in distance to work when choosing a rental home, while one in five (21%) also prefer to live near public transport links or airports.

2. Sense of community

As experiences are valued highly among young professionals, creating a sense of community is key in build to rent properties. Your professional audience needs to feel part of a well connected, respectful and communal living environment.

A good way of ensuring a positive community atmosphere is a Facebook group for the building. This can be a good way for tenants to interact with other people that they are living with, and create social events, such as barbecues and meet-ups. This is particularly appealing to those who have only recently moved to the area for work and don’t know many people before they move in.

In order to accommodate and promote this social setting, spaces, such as rooftop terraces, communal gardens or lounge areas, are a good idea for tenants to socialise and relax outside of their own homes.

build to rent

3. Not just a place to sleep

Creating space, or the illusion of space, is very important for ensuring that tenants don’t feel too claustrophobic. In-built storage facilities will mean more floor space and open-plan rooms, which are more appealing to millennials.

Lighting is crucial for making rooms appear light and spacious, so natural light is a must-have. However, being able to wind down with more relaxed lighting is also important. Therefore, well-sized windows and dimmer light switches will help to facilitate this. There should also be lots of plug sockets available, so that your tenants can use lamps and other electricals, such as chargers and tablets, to create a personal environment.

4. Stay up to date with technology

Cutting edge technology is vital to enhance the customer experience. Millennials rely heavily on fast and reliable wifi in their lives, from streaming TV shows and movies, to ordering their weekly groceries online. High-speed connectivity is an essential part of renting for 80% of young professionals.

Being able to control all aspects of your home at the tap of a screen is becoming more popular. You should ensure that this is incorporated into your build to rent properties, as well as any other upcoming home technologies.

5. Be future-proof

As tenants are looking to rent long-term, they will be keen to live in a building that is set to last. You should make sure that you invest in solid infrastructure, so that you can ensure that your tenants have what they need for years to come.

Integrating engineering systems allows for high quality space, which means that developers have more floor space to play with.

In order to use less power, consequently providing lower energy bills, you should have a full fibre infrastructure that will stand the test of time. This will also reduce the tenants’ carbon footprints, which is a key and topical issue for millennials.

Are you looking to invest in build to rent properties? Make sure that your investment has the features above.

Buy to Let is dead, long live Build to Rent

Published On: March 23, 2018 at 10:19 am

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Categories: Lettings News

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Buy to Let is dead, long live Build to Rent

With many people living in rented accommodation, in part due to difficulty in getting onto the property ladder, it seems it is the number of rented homes available that needs to expand.

  • Buy to let decline leaving vacuum for build to rent (Atlas Residential)
  • 69% of landlords put off further buy to let investment (Residential Landlords Association)
  • There are just 105,000 build to rent homes in UK so far, but sector ready to boom (Atlas Residential)

Buy to Let industry in decline

We’ve heard a lot about the 3% Stamp Duty levy on buy-to-let homes, the effect of which seems somewhat a punitive measure directly affecting private landlords. As a result, 69% of landlords surveyed by the Residential Landlords Association (RLA) have been put off making further investments.

Managing Director of Atlas Residential, Jonathan Ivory, says: “just as the UK needs more rental homes than ever before, the stamp duty change has significantly dented investors’ interest in providing those homes.

“We’re in danger of seeing a real vacuum in the buy to let market – many of those submitting their tax returns this April and May will be thinking carefully about alternative ways to make money.

“Thankfully, the build to rent sector is growing rapidly, providing the UK with the means to fill that vacuum.”

According to the institute of Fiscal Studies, just 25% of those born in the late 1980s owned a home by the age of 27, compared to 43% of those born in the late 1970s. This is quite a staggering statistic for such a short time frame – in just a decade, the housing market experienced significant shifts.

Due to the impact of recent tax hikes on the housing market, buy to let landlords are increasingly being put off new investments, and looking for other ways to generate income.

Build to Rent housing could be a futuristic solution

Despite the buy to let market becoming increasingly hostile, the government has stated it is committed to improving the UK’s housing market in other ways. In fact, the stamp duty levy on buy to let properties (as well as tougher lender criteria and the reduction on mortgage interest tax relief) could put buy to rent investors in a much better position.

Some measures the government may put in place include making planning permission harder to obtain. This mean it is likely to primarily have an effect on developers that might hold onto land simply to watch its value increase. This change could give rise to a generation of build to rent developers who are looking to create homes with the needs of the modern inhabitant in mind.

Atlas Residential and Rockspring Property Investment Managers LLP's complete and operational site, Bow Square, Southampton

Buy to Let is dead, long live Build to Rent – Bow Square, Southampton

As Ivory notes, “Build to rent provides an unprecedented opportunity to put renters’ needs first. Renters can enjoy premium facilities that have been shaped around the contemporary urban lifestyle. Demand for homes in the UK is stronger than ever and the build to rent sector is ideally positioned to meet that demand. It is also well placed to adapt to the changing needs of the market. As the build to rent sector in the UK evolves, family homes are starting to take shape.”

In the United States, build to rent communities are more widespread – with low-rise, family homes including facilities such as playparks and swimming pools on site. In the UK, the sector is still in its infancy with just 105,000 homes either complete, underway or planned. Considering the UK’s population now amounts to over 65 million people, this is a very small amount. With buy to let properties quickly losing their charm, the property development market in the UK is likely to look to build to rent developments to create the housing communities of the future.

Can Build-to-Rent Schemes Alleviate the Social Housing Shortage?

Published On: October 24, 2017 at 8:44 am

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With social housing in limited supply, Paul Staley, Director at SDL Group, explains how build-to-rent schemes (B2R) could deliver much-needed affordable homes.

Paul Staley, Director of SDL Group

Paul Staley, Director of SDL Group

As with most issues and problems, there is often no single solution, and the housing crisis is no different. Even though some local authorities have stepped up efforts to deliver more social housing, there’s no question that demand is still outstripping supply. Local authorities should therefore be looking much wider than the traditional registered providers when it comes to the provision of affordable homes.

I suppose the big question is, what you define as affordable housing. Is it traditional social rentals and private lets, or the new breed of shared ownership, Help to Buy and increasingly B2R?

Yes, the private rental sector has a long history in the provision of low cost housing – although the sector has been blighted with problems and issues of absentee and rogue landlords, which have tainted the local authorities’ view of this sector. B2R aims to readdress this reputation through the provision of quality low cost housing professionally managed and maintained – held for the long-term by institutional investors.

SDL Property Management (previously SDL PRS and Estate Management) is working with a number of institutional investors on the provision of low to mid-density rental accommodation on the edge of major conurbations and towns. The majority of these schemes are located on brownfield sites and are designed to cater for the local market, providing a real alternative for those who would like to buy but can’t, or feel renting is the best solution for their own personal situation.

We believe the solution for local authorities is to consider and include B2R in their plans to deliver affordable accommodation across their boroughs.

Councils too must play their part by releasing land for housing and streamlining the planning application process, to make renting more affordable for those who are not in a position to buy.

It should be remembered B2R could also reduce the financial burden on local authorities, since housing associations receive Government grants, rent and, increasingly, funds from private investors.

As the Government pushes ahead with plans to extend the Right to Buy scheme, the UK’s social housing stock will only diminish further. Local authorities are unlikely to be able to plug this gap, which means we’ll need housing associations to deliver B2R schemes more than ever before.

For more details on SDL Group, visit sdlgroup.co.uk.

Nearly 81,000 Build to Rent units planned or completed in England

Published On: August 4, 2017 at 12:02 pm

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Fresh Government figures show that there are 80,855 Build To Rent properties that have either been completed or are planned.

Data shows that investment in this region of the private rental sector could rise to £70bn, which could help to create 15,000 homes to rent each year until the year 2022.

In addition, it has the potential to reach a total of at least 240,000 homes built for the purpose of privately renting by 2030.

‘Unlocking’

These figures were revealed during the announcement of a £65m boost from the Government to ‘help unlock’ more than 7,600 homes in Wembley. At least 6,800 of these properties will be available to rent.

The Build to Rent sector has also received the backing of the Royal Institution of Chartered Surveyors and the British Property Federation.

A joint statement said proposals under consideration with the Government include altering planning rules so councils must initiate greater forward planning of rental needs.

There are also proposals to introduce tenancies of three years or more, with these seen as more family-friendly than the more traditional six months tenancy often seen in buy-to-let.

Nearly 81,000 Build to Rent units planned or completed in England

Nearly 81,000 Build to Rent units planned or completed in England

Longer Tenancies

The British Property Federation says that 35,000 tenants have been offered tenancies of three years or more in recent years, ever since a greater emphasis was put on longer tenancies.

Chief Executive of the BPF Melanie Leech, said: ‘We fully support the introduction of affordable private rent, and the inclusion of build to rent and affordable private rent within the National Planning and Policy Framework and Planning Practice Guidance – a multi-tenure approach where all housing sectors receive the right policy support is critical to fixing the UK’s broken housing market.’[1]

Head of UK external affairs Geoff White also said: ‘The government’s proposals to boost supply across all tenures is a welcome acknowledgement of the extent of the housing challenges and the scale of the response required.’[1]

Housing and Planning Minister Alok Sharma observed: ‘Whether renting or owning all families should have the security they need to be able to plan for the future. That’s why as part of our plan to fix the broken housing market we’ve been taking action to create a bigger and better private rental market, supporting new Build To Rent developments so that tenants can have greater choice.’[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2017/8/almost-81-000-build-to-rent-units-in-england-completed-or-planned

 

Developers call for professional approach to drive up BTL sector standards

Published On: July 20, 2017 at 8:54 am

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The most recent English Housing Survey published by The Department for Communities and Local Government has underlined the need for improved standards in the market.

More than one-quarter of homes in the private rented sector were found to have failed to meet the Government’s Decent Homes standards. This has led to calls for a more professional approach in order to improve conditions, from many developers of Build to Rent housing.

Substandard

28% of properties in the sector are currently considered to be in a substandard condition – taking into account electrical safety, disrepair, damp and other factors. However, there is a marked improvement from a decade ago, when this figure stood at 47%.

Worryingly, the survey revealed that nearly one in five of those living in the private rental sector lacked basic fire protection, such as smoke alarms. This is alarming considering that the number of private renters has nearly doubled during the last ten years.

In addition, the survey indicates that a number of people renting from a private landlord suffer from a lack of security. This is highlighted by the fact that nearly two-thirds of tenants evicted from their property were pushed out as their landlord wanted to use or sell the accommodation.

Security

As Jean Marc-Vandevivere, Chief Executive of PLATFORM, notes: ‘The issues across the private rented sector are often ones of security, from tenancy length to fire protection.’[1]

‘Those in the build to rent sector have a vested interest in keeping hold of their tenants and ensuring that the homes we provide are to the highest possible standard. The continual growth of the private rented sector demands a change in approach, we need to see a shift towards professionally managed homes that provide what renters are really looking for, a secure place to live and grow.’[1]

Developers call for professional approach to drive up BTL sector standards

Developers call for professional approach to drive up BTL sector standards

Dissatisfaction

Johnny Caddick, managing director at Moda Living, observed that the results of the survey found that dissatisfaction rates of those living in the private rented sector was the greatest of any tenure group.

With over 20% of tenants unhappy with their accommodation, this is a greater rate than 10% for social housing a 1% of owner occupiers.

Mr Caddick said: ‘The many real concerns people have around renting are totally justified, but our aim is to address all of these with purpose-built developments that are managed 24/7 and which engender a real sense of community.’

‘We have a commercial imperative to do things properly, whereas traditional buy to let landlords have little incentive to maintain and upgrade knackered old properties. Renters in Britain deserve a better deal – as they receive in the U.S. and Europe.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/7/–professional-approach-needed-to-drive-up-standards-in-prs-claim-btl-developers

Rents in Scotland reach record highs

Published On: July 12, 2017 at 8:59 am

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Recent figures show that rents in Scotland have reached a record high, with demand from renters continuing to exceed supply.

The report for the second quarter of 2017 indicates that rents rose by 1.5% year-on-year to hit an all-time high of £789 per calendar month. This was led by growth in Edinburgh and Glasgow.

Build to Rent

A key driver of the Scottish rental market is the rapidly growing Build to Rent. As Stuart Montgomery, Director of Lettings at Rettie & Co, observes: ‘Build to Rent is now emerging in Scotland as a key new residential use class, with over 2,500 units now in the pipeline in Edinburgh and Glasgow.’[1]

By region, the Citylets report offered these insights into rental markets in Aberdeen, Edinburgh, and Glasgow:

Aberdeen

The rate of decline eased in the quarter from -11.2% to -5.2%. In addition, there was positive growth for four-bedroom properties, representing the first rise for any property type in the city for nine quarters.

Average rents in Aberdeen are currently £788pcm – just £1 below the national average.

Lisa Breber of Stonehouse letting noted: ‘There is also evidence to suggest that the decrease in rental levels is now beginning to stabilise. Stock levels in Aberdeen remain high, however, generally a well presented and fairly priced property will let quickly.’[1]

Rents in Scotland reach record highs

Rents in Scotland reach record highs

Edinburgh

In Scotland’s capital, there has been positive annual growth every quarter for the last 8 years. Now, the average property to rent here stands at £1,037pcm, representing a new all-time high.

The Citylets Index for the city indicates that there has been around a 4% growth annually since the start of 2008. However, this figure has risen to around 6% since 2012.

Glasgow  

Glasgow has seen year-on-year gains regularly hit between 4-5%. Rents here are now £755pcm, a rise of 5% from the same period in 2016. All property types here experienced positive gains, with rents for four-bedroom dwellings rising by 10.1% over the year.

Strong Growth

Thomas Ashdown, MD of Citylets, observed: ‘Our latest report underlines the metronomic strong growth in Scotland’s largest cities.’[1]

‘Edinburgh has recorded positive annual growth every quarter for a full eight years and averages 6% over the last five years. Glasgow is up 5% on average over the same period,’ he continued.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/rents-hit-record-high-in-scotland-as-demand-far-exceeds-supply