Property News > US-style rental homes becoming increasingly popular in the UK

US-style rental homes becoming increasingly popular in the UK

The UK is seeing an influx of US-style build-to-rent homes, as new analysis shows that
some 150,000 properties are currently at various stages of development, with some already
completed.

Indeed, the research carried out by Savills on behalf of industry trade body the British
Property Federation found that several large cities, predominantly in more northern reaches of the UK such as Manchester, Birmingham, Liverpool, Leeds, Glasgow and Sheffield currently lead the way.

Excluding London, the UK overall saw a 51% increase in the completion rate of these US-
style rental homes when comparing the fourth quarter of 2019 with the same quarter of
2018.

Build-to-rent homes usually come in the shape of apartment blocks with a hotel-style
concierge and access to shared facilities such as gyms and residents’ lounges. They have
been popular across North America for decades, where they are commonly referred to as
‘multifamily’ sites.

Richard Jackson, co-founder and managing director of Apache Capital Partners, which has a £2bn build-to-rent development pipeline with Moda Living, said: “Given the wider investment landscape and the state of the traditional private rented sector in the UK, it’s no surprise that build-to-rent continues to attract interest from both investors and consumers.

“The under-performance of traditional investments such as sovereign bonds has encouraged institutional investors such as pension funds and insurers to look at emerging asset classes like BTR for long-term steady income streams to match their liabilities, while the poor quality of accommodation and service that many renters receive from private landlords mean a purpose-built, professionally managed offer like what we’re providing through our partnership with Moda Living is highly appealing.

“We’ve seen healthy demand at our first building to open Angel Gardens, and we see
regional BTR going from strength to strength, buoyed by strong fundamentals and a
renewed political focus on powering up the UK regions.”

Related Articles

Signs of so-called ‘Boris bounce’ yet to appear

As yet, there are no signs of a New Year ‘Boris Bounce’ in the housing sector, withinstructions and asking prices remaining largely unmoved, according to the TwentyCiProperty & Homemover Report ...
View >>

Slow wage growth to blame for limited level of housing affordability

According to new research, housing affordability levels in the UK would be the same as they were in 2007 before the economic crash if wage growth had matched that of ...
View >>

Sluggish rental activity recorded in December

The latest figures reveal that the average UK renter was paying £902 for their property in December, having fallen from an average of £927 throughout the year.Indeed, lettings platform Goodlord’s ...
View >>

Need Help?

Thank you. We will give you a call back as soon as possible!
Name *
Email *
Phone *
When would you like a callback? *