Breakfast and Build to Rent
Our Policy Officer (Real Estate), Padraig Blee blogs about the Build to Rent report, published by Addleshaw Goddard, in collaboration with the BPF, Savills and Turley.
On 3 April 2019 Addleshaw Goddard hosted a breakfast roundtable event focused on the Build to Rent (BTR) sector- Britain’s quality rental market. The roundtable was attended by key experts in the sector including developers, economists, planning experts, policy experts and members of relevant public bodies. The event featured a reading and discussion of a report into the state and future of the sector composed and published by Addleshaw Goddard in collaboration with the British Property Federation, Savills and Turley.
This report looks at seven key areas within the sector
- Building Build to Rent volumes and scales
- Funding the growth of Build to Rent
- The view of the millennial on the sector
- Built to Rent and hospitality
- Positive planning developments
- Facing future challenges
- Increasing the scope in Scotland
One of the most important takeaway points from the report and roundtable discussion is the level of growth in the sector not only in London but in the rest of the UK. Research from sector experts at Savills found that the number of complete BTR units outside of London has increased by over 44% since Q1 2018 whilst those in construction in the same period increased by 17%. This combined with 27% growth in London tells us that the entire BTR sector across the country has grown by 13 percent.
With such growth evident in the sector the report examined how this is being funded and who and where the investments are coming from. The report notes the increasing confidence that major funds and banks now have in the sector and identified debt for development & investment and institutional forward funding as the main sources of funding.
As a sector often associated with young professionals who are attracted to the affordability, central living, close transport links and bountiful amenities that differentiates BTR from traditional private rental accommodation the report takes a look at the perspective of millennials. Written by a consultant economist from Turley this section of the report details why millennials are attracted to this model of living. The section notes that renting is the most common option among this age group and is likely to become even more common .The report references millennial preferences for guaranteed tenancies, professionalism, quality, financial astuteness and spaces and places that can accommodate flexible working patterns. This section of the report provides a clear and comprehensive view as to why the BTR model plays an important role in meeting millennials housing demands.
The report also covers other areas of key importance within the BTR sector with pieces from planning and policy experts from Addleshaw Goddard, the British Property Federation and the Scottish Property Federation with sections covering the positive developments and strides made at national and local level in regards to planning (how the planning system now differentiates build to rent from build to sell) , what needs to be done to face future challenges (political, planning, investors) and finally an analysis of the development and future of BTR in Scotland.
