With more than 150,000 Build-to-Rent developments either completed, under construction or greenlit, it's safe to say that homes designed exclusively for renters are increasing in popularity. But will Build-to-Rent go on to become the default way of renting?
The Build-to-Rent pipeline jumped 22% last year, which was another show of faith in the renting method. As more renters become aware of Build-to-Rent homes, their popularity will only increase further. In this guide, we're exploring if Build-to-Rent will become the primary way of renting a home in the near future.
Build-to-Rent stock now accounts for 1% of all rental properties in the UK. And while that might not sound like a large number at face value, dig a little, and you will see how impressive the feat is.
Build-to-Rent is a relatively new method in the UK after crossing the pond from the US.Known as Multi-Family homes in the States, the development of Build-to-Rent in the UK didn't start until 2015. That means it's only really been a concept over here for the last few years. Yet, it already accounts for 1% of the rental market.
Growing demand for homes
The private rental sector continues to grow, which means the demand for rented accommodations is increasing. There are now an estimated 2.4 million more people living in rented homes than a decade ago, and the market is set to account for a quarter of all people living in homes by the end of 2021.
With more demand comes more options, and the surge in Build-to-Rent homes will help meet that demand while giving renters a more refined renting experience.
It's all about the community
Build-to-Rent homes appeal in terms of their modern design and high-end living standards, but they also provide an additional sense of community with shared areas such as lounges, dining, gyms and even cinema rooms.
With features like on-site social spaces, renters have options that go way beyond a home. That extra appeal is a major plus-point for Build-to-Rent and appeals significantly to the key renting demographics.
An encompassing experience
Build-to-Rent answers some of the questions traditional rental properties can't with an experience designed exclusively for the renter. The property's sole purpose is to cater to renters' needs, which is a significant selling point compared to the more traditional way of renting.
Living in a Build-to-Rent home is a lifestyle experience. Everything is taken care of by the Build-to-Rent operator, which allows for a seamless way of managing properties and providing services like a concierge while also offering quick maintenance fixes.
Offering different types of housing
Living in a Build-to-Rent home can be a different experience for the renter, depending on the stage they've reached in their life. Multi-Family homes, where there's a building with lots of units and social spaces, might be the most popular type of Build-to-Rent property, but it's not the only option on the market.
Single-Family Homes offer an option for families who more interested in living in a house than they are having on-site social spaces. Co-Living spaces, on the other hand, focus even more on the shared living aspect, offering rooms instead of full apartments and placing emphasis on
shared lounges, kitchens and other kitchens for an increased social experience.
Expanding across the UK
Right now, London and Manchester are the primary hubs for Build-to-Rent, with most units concentrated in these areas. But in what is a sure sign of its emerging popularity, communities are cropping up all over the UK, including major cities like Birmingham, Cardiff and Liverpool.
The demand in these cities shows how Build-to-Rent is becoming more important and a genuine living option for renters. And we wouldn't be surprised to see it evolve into the de facto way of renting within the next 10-15 years.
The way forward for renting
Build-to-Rent has everything it needs to succeed, with its ability to cater to renters the main selling point. It's an ecosystem designed with renters in mind. Coupled with five-star living options, excellent social spaces, and an easy way to manage the in-life tenancy, there's no reason why Build-to-Rent can't become the primary way of renting a home.