In this guest post, CBRE combines its data with HomeViews review data to explore the connection between higher rents and resident satisfaction. This article is taken from the CBRE chapter in the 2023 HomeViews Build to Rent Report.
For this analysis, we compared rents from 16 operational BTR schemes across London with their resident satisfaction scores as generated by verified HomeViews reviews.
For each scheme we considered both the actual rent, and the premium to the embedded rents in the respective borough. Along with the overall score, we also analysed resident ratings across the five HomeViews review categories: Facilities, Design, Location, Value, and Management.
Rents vs. Ratings
The results showed that there is a positive correlation; schemes with higher rents generally reported a higher level of satisfaction and had higher resident ratings.
This may be partly self-selecting, with higher rents reflecting a higher level of amenity for example. The top three developments for achieved rent averaged a facilities rating of 4.7 compared to a rating of 4.0 for the three lowest-placed.
Design the key factor for BTR
When broken down by category, the strongest correlation between rent and satisfaction was with ‘design’. This may reflect changing lifestyles since the COVID-19 pandemic, as tenants increasingly value well-designed homes.
Our Global Live-Work-Shop Report, for example, highlighted that high-quality homes with dedicated space for working from home, are among the most important factors when selecting a property.
The top three developments for achieved rents averaged a design rating of 4.8, compared with an average of 4.3 for the three lowest placed. The top three were all located in Canary Wharf.
There was also a strong correlation between achieved rents and the satisfaction scores for both facilities and location. This is perhaps unsurprising, with better located schemes providing good facilities able to charge higher rents.
Those schemes with the highest rents averaged a facilities and location rating of 4.7 and 4.9 respectively. Conversely, those with the lowest rents averaged 4.0 and 4.3 for the same respective categories. The chart above shows the different facilities offered across the schemes charging the highest and lowest rents in our sample.
Consistent BTR management
In contrast, there was almost no correlation with the ratings for ‘management’. This category generally scored highly across all schemes, indicating that all BTR developments are performing well in this area, regardless of rental level. And, of course, the professionalised management of BTR is a huge driver of residents into the sector.
These results were mirrored when looking at the premium to the embedded rents in the respective boroughs. Overall, the schemes attracting the highest resident ratings were generally positioned at a higher premium to the local market.
Here, the strongest correlation was again in the ‘design’ category, indicating that high-quality design is a key determinant of achieving a high rental premium.
Blended rent and resident satisfaction score
Difference in BTR / average borough rents and resident rating
Discover more unique BTR insights like this…
HomeViews is the only independent review platform for residential developments in the UK. Prospective buyers and tenants use it to make an informed decision on where to live based on insights from carefully verified resident reviews. Part of Righmove since February 2024, we’re working with developers, house builders, operators, housing associations and the Government to give residents a voice, recognise high performers and to help improve standards across the industry.
