Picture it. There’s a newly-built apartment block with homes for rent near your local train station. There’s an onsite cinema and gym as well as 24-hour concierge. And the landlord offers a long tenancy, while welcoming your pet pooch too.
Sound too good to be true? Not necessarily. There’s a wave of homes being built across the UK that are designed to create a new standard of rental experience.
Want to know more? Here, we lift the lid on build to rent homes.
What is Build to Rent?
Build to Rent, often shortened to BTR, is an industry term used to describe homes that have been designed, built and managed specifically for renters.
This might all sound well, a bit corporate, but bear with us! BTR is aimed at providing high spec modern homes, attractive terms, a professional service and top communal facilities too.
BTR homes are typically in developments or apartment blocks. And unlike regular rental homes, they aren’t bought and sold individually by private landlords. Instead, there is one landlord that owns and manages the entire development.
Initially BTR homes were concentrated in London. But they are now becoming more widely available across the UK.
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Are there many BTR homes available?
The good news for renters is that the number of BTR homes is on the rise.
Back in 2018, there were 31,409 BTR homes completed in London and the regions. They accounted for just 0.6% of the 5.5m privately rented homes, according to Foxtons.
But fast forward to 2023, and the number has increased to 100,372, meaning that BTR homes now make up 1.8% of the entire private rental market (sometimes referred to as PRS). That’s the highest proportion since 2018*.
Looking at London alone, BTR homes completed in the capital accounted for 1.8% of the total private rental market in 2018. Today, they now make up 4.2%.
Sarah Tonkinson, managing director of Foxtons Institutional PRS and Build to Rent, says: 'We’ve seen phenomenal growth across the BTR sector in recent years, particularly within the London market.
'As a result, BTR completions now account for their highest proportion of total PRS stock. However, it’s fair to say that the sector still remains in its relative infancy and so the potential for further growth is vast.
'With a move towards longer term renting until later in life, tenants expect more, both with respect to the quality of rental accommodation available and the security and certainty that long tenancy agreements provide them.'
The good news for renters is that there are more BTR homes in the pipeline. The number of BTR homes with detailed permission at the end of the last year was 58,000. That's the highest number on record, says the British Property Federation (BPF).
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What are the positives of a BTR home?
A new rental standard
BTR homes are run by professional landlords that are keen to provide a high quality experience for renters. They tend to offer flexible and longer-term tenancies and predictable rents. Look out for options such as zero deposits and pet-friendly tenancies.
BTR operators include the likes of Fizzy Living, Get Living, Moda Living and Grainger, while the John Lewis Partnership is also set to deliver around 1,000 new BTR homes.
Modern, convenient homes
BTR developments are purpose-built and energy efficient with modern appliances and facilities.
Mod cons and stylish furnishings are the order of the day. They also tend to be conveniently located near transport hubs in major towns and cities.
The former London 2012 Athletes’ Village in Stratford, east London, has been transformed into one of the more high profile BTR developments.
Slick property management
BTR developments are professionally managed. Many have staff on-site and operate 24/7 security, maintenance and other support. It means that tenants can expect any problems or maintenance issues to be fixed quickly.
Top notch facilities and services
BTR developments often have enviable communal facilities. Think onsite gyms, cinema and games rooms, co-working spaces, chill-out zones, roof terraces and gardens, bike parking and electric car charging points.
In keeping with BTR’s service-led culture, many homes come with top services too. These tend to include superfast broadband, concierge services and resident events. Even in-house baristas for your pre-work flat white!
What are the negatives of a BTR home?
Cost
The main downside of BTR homes - and it is an important one - is the cost. They generally don't come at bargain rates when compared with private rental homes in the same area.
Limited choice
While the number of BTR homes is on the rise, they are still a small proportion of the entire private rental market. And many are apartments, so they are less attractive to families with young children. But more high-spec houses are beginning to become available.
Is build to rent affordable?
BTR is about providing a new rental standard. And while the benefits are clear, they can come at a cost.
That said, the government suggests that 20% of BTR schemes are ringfenced as affordable private rental homes. This is where rent is set at least 20% below local market rents.
*Foxtons analysed BTR data sourced from BPF (Q4 2023) and private rental market data from the government.