£
LET
Comparing the pricing
Using our extensive database of rents
achieved, we compared the average rent
paid for homes in Build to Rent
developments to the surrounding local
market. For one-bed flats, there was a
premium per week ranging from 5.4% to
11.1%, averaging at 9.1%. For two-bed
flats, the premium ranged from 9.4% to
13.3%, with an average of 11.3%.
Part of the BTR premium can be
attributed to their new, or nearly new,
condition. It is also worth noting that
premiums may look higher than the
reality. Rent-free periods are sometimes
used to entice renters at the beginning or
end of a BTR tenancy, yet are not
calculated in the average rent.
Value for money
While average rents are higher than the
local market average, BTR renters get
much more 'bang for their buck'. There is
usually access to communal spaces,
including lobbies, gardens/roof top terraces
and office space. Facilities may include a
concierge, private parking, bike storage,
gyms and a cinema room. It's also worth
factoring in bills. More than half of BTR
developments include WiFi in the rent.
Social network
BTR offers a ready-made community. The
majority of the developments in the top
ten-rated developments in the 2021
HomeViews report offered communal
inside spaces, concierge, a gym, bike
storage and also held events. Those rated
lower were less likely to offer these.
BUILD TO RENT PRICING
4 London Lettings Report Q3 2021 | Build to Rent
Foxtons lets 2020 to date
BTR is typically pitched towards the upper price thresholds. The additional
amenities and space provision usually attracts a premium to more traditional
private rented homes within the area.
9.1% 1-BED FLAT 11.3% 2-BED FLAT
AVERAGE BTR PRICING
PREMIUM FOR BTR HOMES OVER THE LOCAL AVERAGE
27% OF FOXTONS BTR UNITS
LET WITHIN ONE WEEK
OF COMING TO MARKET
16% FOR THE REST OF THE PRIVATE RENTED
SECTOR (PRS)
£422 AVERAGE RENT PER WEEK
Foxtons, flats, 2020 to date
DESPITE THE HEADLINE
BTR PRICING, WHEN
AMENITIES, CONVENIENCE
AND COMMUNAL SPACE
ARE FACTORED IN, IT
STARTS TO LOOK LIKE
GOOD VALUE.
SARAH TONKINSON
MANAGING DIRECTOR - INSTITUTIONAL PRS
AND BUILD TO RENT