Build to Rent (B2R) is a term used to describe private rented residential property that is designed for rent instead of for sale. It involves the building of homes that are specifically for the rental market and is supported by the government as a way of providing new, decent quality, private rented housing.
How does it benefit the tenant?
- Living in a build to rent property means that you’re in a development that’s been specifically designed for renters. Depending on the development, an on-site maintenance team, a concierge for mail and communal areas will all be available because of this.
- Rent is paid directly to the landlord, meaning no extra service charges or agency fees apply.
- B2R plays a key role in providing quality, affordable homes to those that cannot yet make it on to the housing ladder and therefore is a solution to a housing crisis with demands for homes far exceeding supply.
- It also allows for a greater sense of community within the development as a mass of residents can be achieved more quickly with Build to Rent, as opposed to Build to Sell as with this, sales are usually phased. Retail and leisure facilities and transport links all help to increase the vibrancy of the area at an earlier stage.
How does it benefit the investor?
- Property Investors can achieve long-term investment returns, meaning they can generate a sustainable income over time by renting residential property. It’s also a popular proposition with institutional investors like pension funds, insurers and charities as they are organisations that are more interested in a regular return, as opposed to a one-off cash bonanza.
- Renting is a growing market and over the past twenty years, the number of private renters has grown from 4 million to 11 million which means 1 in 5 people are now renting meaning the demand is high for rented properties.
- With B2R, the tenants will not benefit from an extended lease and so landlords will retain control over their investment, as well as the ability to redevelop the flats in the future.
The number of large-scale Build to Rent developments is certainly on the increase and whether you be a tenant or a landlord, we are always happy to help. Get in touch today with any questions you may have.