Build To Rent
As demand for rental properties outstrips supply and the sales market continues to price out first time buyers, increasing pressure has fallen on the government and developers alike to meet the demand for housing.
Whilst a lack of affordability in the housing market has forced many into the private rental sector, attitudes towards the rental market have continued to shift in its favour with ‘Generation Rent’ embracing the flexibility and lifestyle the sector has to offer. It is for this reason that the recent Build to Rent model is expected to see significant growth in the coming years.
Retailer John Lewis has now announced its plans to venture into the Build to Rent market. The move comes as part of a wider plan to adapt to rapidly changing consumer habits and expand into areas where it can address the housing shortage and support local communities. A move that aligns with their ethos as a Partnership and a major drive behind the Build to Rent model.
What is Build to Rent?
Build to Rent or ‘BTR’ is the development of new build apartment blocks tailored exclusively to the needs of renters. The model addresses flaws in the private rental market that many face including short-term leases, unscrupulous landlords and costly up-front fees beyond the typical deposit.
What benefits does Build to Rent offer?
Build to Rent developments promise tenants comparatively longer tenancies than the average rental accommodation. These purpose-built communities offer a wide range of amenities with some developments adopting a modern approach with the use of apps, enabling tenants to communicate with on-site managers, report maintenance and offer greater transparency that few rental models can provide.
The attraction for developers and investors to this model is the financial advantages it can offer. In addition to tax incentives proposed by the government, the model provides developers with a residual income alongside the capital growth associated with owning property on this scale.
Developers have an opportunity to both increase the supply of homes and improve conditions for renters, whilst simultaneously benefiting from a sector that can only expect to see a rise in growth and demand.
The future of Build to Rent
Although in its infancy, it is unsurprising that the Build to Rent model is fast becoming a market leader in the private rental sector. With London at the centre of BTR property in the UK, commuter towns on its outskirts are rapidly following suit, creating significant demand for regeneration.
With the advantage of excellent transport connections and ideally situated within close proximity of London, counties such as West London, Buckinghamshire and the Thames Valley region provide profitable investment opportunities to developers.
How our experts can help
IBB Law’s multi-disciplinary Real Estate Group would be able to assist developers or investors at all stages of a Build to Rent development, whether that be with our:
- Commercial Real Estate team assisting with the financing of such projects;
- Our Residential Development Team stepping in to assist with purchasing the land, planning and statutory agreements;
- Our Construction and Engineering Team assisting with the procuring the works and the professional, through to practical completion of the development; and
- Our New Homes team assisting at the final stages, putting together the relevant leases and/or tenancy agreements.
Speak to our Build to Rent experts
If you wish to discuss a potential development or to discuss your requirements, please provide some brief details of your project to firstname.lastname@example.org together with your contact details.
We will come back to you to arrange an initial meeting with key members of IBB’s Build to Rent team.
How can we help?
To speak to one of our specialist legal teams, please click the button below.03456 381381
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