A Build to Rent development has been specifically designed for renters. Instead of an individual landlord who might own one or a small portfolio of flats within a building your landlord owns and maintains the whole development that you live in. If you are part of the growing number of people who privately rents then Build to Rent is a term you will become increasingly familiar with.
Are there many Build to Rent developments?
The property industry is responding to the growing number of people renting privately in the UK which has doubled over the past decade, with 20% (30% in London) now in private rented accommodation. Recent tenant surveys have reported that the number of people choosing to rent is increasing and whilst most would still aspire to own their own home many choose to rent for convenience or location.
Whilst still a small proportion of the rental market (around 15,000 units are currently available within a Build to Rent development within the UK) this is set to grow with 100,000 units currently in construction. The UKAA is a new organisation set up to more clearly explain this new rental experience and the government is also supporting with a £1 billion fund to help finance schemes.
What are the benefits of Build to Rent?
Build to Rent landlords are invested in retaining their tenants and keeping them happy. Landlords focus on service and experience and in some developments that means an on-site maintenance team, a concierge who’ll take in the mail and communal areas where you can meet your neighbours or invite friends over.
“Rather than rogue landlords and short tenancies the government is looking for professional landlords with long term commitment offering longer tenancies ”
Harry Downes, Managing Director of Fizzy Living
A government review of renting made a number of recommendations which Build to Rent landlords have been some of the first to adopt. Some of these include tenancies of up to three years, allowing residents to put down roots in a community and have some security. Also there are no agency fees because you rent direct from the landlord, no extra service charges and any annual rent increases agreed in advance.
Is Build to Rent affordable?
Build to Rent is not a solution to the housing crisis and developments are often targeted at different demographics with different needs – such as young professionals, pet friendly communities or developments for the over 55’s. A report by JLL found that on average rents were 11% higher than the local market and this is explained by the additional facilities and service the Build to Rent landlords are offering.
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