There's a rental revolution happening right here in London and across the wider UK,
and it's called Build to Rent (BTR).
In the UK, we're late to the party. Multi-family living, as it's called in the US, is an
established sector, with the value of buildings estimated to reach $80bn by 2022.
Across the Channel, the Build to Rent market is similarly mature, with Germany and
the Netherlands the market leaders.
SO WHAT IS BUILD TO RENT? AND WHAT MAKES IT DIFFERENT?
It is homes built only for renters. You can't buy an apartment in one of these communities.
They're typically owned by institutional investors and are managed by specialist operators.
COMMUNITY IS AT THE HEART OF SUCCESSFUL BUILD TO RENT
BTR is tenant-orientated. It provides long-term security of tenure in high-quality and
bespoke-built apartment blocks that are professionally managed. With a host of amenities,
facilities, communal living spaces and residents' events, it is perhaps no surprise that renters
are becoming increasingly attracted to these blocks. The fact is that BTR operators want
renters to stay permanently and providing a community is key to that strategy.
While BTR in the UK still only accounts for 1% of the private rental market, it has huge
potential and is a sector Foxtons has supported for a number of years. It currently
accounts for 8% of our lets, up from 2.2% in 2017. In this report, we explore this exciting
market in more depth.
BUILD TO RENT
A RENTING REVOLUTION SARAH TONKINSON
MANAGING DIRECTOR -
INSTITUTIONAL PRS
AND BUILD TO RENT
8%
$80BN
<1%
OF FOXTONS LONG
LETS* IN 2021
WERE IN BTR
DEVELOPMENTS
ESTIMATED VALUE
OF US MULTI-FAMILY
BUILDINGS BY 2022
BTR AS A % OF THE
TOTAL VALUE OF UK
PRIVATELY RENTED
HOUSING
London Lettings Report Q3 2021 | Introduction 1
Foxtons, 2021
Statista
UKAA
*tenancies of more
than six months