En�eld
Barnet
Harrow
Hillingdon
Hounslow
Merton
Sutton
Wandsworth
Bromley
Croydon
Bexley
Greenwich
Lewisham
Southwark
Tower
Hamlets
Brent
Ealing
Lambeth
Barking &
Dagenham
Havering
Redbridge
Waltham
Forest
Haringey
Camden Islington Hackney
Hammersmith
& Fulham
Kensington
& Chelsea
City of
Westminster City of
London
Richmond Upon Thames
Kingston
Upon Thames
Newham
Diversification
The key to rebalancing the rental market
lies in product diversity. Build to Rent
(BTR) providers need to offer a wider
range of sizes, specifications and price
points. Until now, the sector has tended
to focus on the premium rental market, in
large part driven by the need to compete
with housebuilders for land. But attitudes
and aspirations need to change as the
sector matures.
Foxtons have led the way in introducing
thousands of renters to the BTR lifestyle,
and we can see the opportunity for
developers to capture more of the market
by diversifying the offering. We have a
huge pool of working professionals who
would like the convenience and
community inherent to the BTR lifestyle
without the additional cost of luxuries
such as dog parlours and roof-top
swimming pools on site.
There is no doubt that pioneering providers
have successfully used a premium product
strategy to attract renters. The next
opportunity must be to address the needs
of the mainstream rental market with a
pared-down and cost-effective offering.
BUILD TO RENT
ADDRESSING THE
MAINSTREAM NEED
Over one million of London's 3.4 million households live in the private
rented sector. A growing shortage of rental homes has caused rents to rise
steeply and small investor landlords continue to exit the sector in the face of
regulatory pressures. Institutional investors have an opportunity to step in
and provide a solution to the mainstream need.
+ 1
MILLION 1 IN 9
LONDON
HOUSEHOLDS
IN PRS
30% OF ALL HOUSEHOLDS
NEW BUILD
HOMES IN THE
PIPELINE ACROSS
LONDON IS BTR
Dataloft, Census 2021
Dataloft, Molior, based
on schemes 20 units+
Dataloft, Molior, based
on schemes 20 units +
BUILD TO RENT
MEETING
A NEED
Proportion of private new
build homes in BTR.
15%-25%
Over 25%
2.5% - 7.5%
7.5%-15%
Less than 2.5%
The London Report 2023 | Build to Rent 14