The Build to Rent sector (BTR) is rapidly expanding. There are now an estimated
30,000 Build to Rent homes in London, with last year alone seeing a 24%* rise.
Generation rent
Set to triple in the next few years, London's
BTR sector is gaining momentum. The
sector's soaring popularity has been
supported by the changing demands of
renters. Generation Rent, the 25 to 34
age group, is a growing demographic.
While some may be impacted by the
affordability issue of buying property in
London, others want the flexibility of
renting and are turning to BTR as a lifestyle
choice rather than a temporary step.
Foxtons involved from outset
Almost 50% of completed BTR homes in
the UK are in London, and Foxtons have
been working with the sector since 2016.
Often BTR has offered a completely new
concept in an area, for example Essential
Living's Vantage Point in the borough of
Islington. Our London-wide network and
reputation has allowed us to educate
renters and promote movement between
areas. In the case of Vantage Point, we
were able to identify renters from
Marylebone, Camden and the West End
who wanted a quality development,
understood the concept, and were willing
to travel that extra few minutes to find it.
Evidence of the attractiveness of BTR can
be found in the length of time taken to
let a flat. 27% of Foxtons BTR units were
let within one week of coming to market,
compared with 16% for the rest of the
Private Rented Sector (PRS).
What makes a BTR
development?
Not all BTR is the same, with each
brand offering slightly different levels of
amenities, lifestyle and price. BTR could be
considered in terms of a hotel-style star
ranking system. The core offering
of a well-managed and maintained
development, but with few or no facilities,
would equate to a 3* rating, while a
5* development has extensive amenities.
The 2021 HomeViews report provided
a list of which amenities are typically
offered by BTR operators across the
country, based on a sample representing
around half of all completed schemes.
Having a concierge is almost a prerequisite,
included in 82% of schemes, while more
indulgent facilities, such as a spa or cinema,
are included in fewer than 10%. HomeViews
also report the score that residents have
given to their BTR home, with the average
being 4.39 out of 5 (4.19 in London).
Community matters
Since 2017, 43% of Foxtons lets to renters
in BTR developments included a single
renter on the lease. This differs from the
wider market where 34% of properties are
let to just one tenant. The community feel
of BTR's shared work and social spaces,
together with the organisation of events,
provides a real alternative to sharing. This
is hugely appealing to modern renters and
has become increasingly attractive over
the last 18 months.
Raising the bar
BTR operators are well-placed to consider
sustainability and eco-credentials, high
on the agenda of policymakers and,
increasingly, renters. The local area is
often enhanced by the arrival of a BTR
development, seeing a boost in connectivity
and the demand for local services
including restaurants, cafes, bars and shops.
A NEW RENTAL CLASS
29,977 BTR HOMES IN LONDON,
UP 24% IN PAST YEAR
54,705 BTR HOMES UNDER
CONSTRUCTION OR
IN PLANNING
LONDON
9 BOROUGHS HAVE MORE THAN 1,000
BUILD TO RENT HOMES
Molior
*British Property Federation (BPF)
British Property Federation (BPF)
2 London Lettings Report Q3 2021 | Build to Rent