The people behind the largest ever analysis of Build To Rent in England claim it shows a broad and evolving customer base similar to the wider private rented sector.
The report - from the British Property Federation, Dataloft, BusinessLDN, and a BTR trade body called the UK Apartment Association - analysed 122 schemes in England totalling over 40,000 residents in over 19,000 homes.
This is over 25 per cent of total completed BTR homes in the UK.
A statement about the analysis, sent by the British Property Federation, says: “Amidst a highly volatile rental market, BTR was shown to offer the option of long secure leases, with 92 per cent of BTR schemes offering up to three year leases, and a quarter offering leases of more than three years. Close to a quarter of BTR tenants are currently in tenancies of three years, and over half of leases were renewed over the last year.”
The statement says BTR provides extensive amenities alongside high quality and well-managed apartments.
For a single monthly rent, 73 per cent of residents access a co-working or meeting space, suiting new ways of working. Outdoor space is a core component of BTR with 81 per cent of schemes having a shared garden or roof terrace. Nearly two-thirds of residents also have access to a gym, and a third have fitness studios.
There is 24-hour security at 69 per cent of schemes, and concierge at 85 per cent.
Perhaps controversially the report claims the proportion of monthly income families, couples, and sharers spend on BTR homes is less than in the wider private rented sector, with singles paying only slightly more.
BTR backers say this tenure also adds value with amenities captured within the monthly rent – costs, such as gym membership or studio passes, that many renters may incur separately when renting from private landlords.
The profile of renters living in BTR and the wider private rented sector is similar across age bands, with 87 per cent of BTR and 85 per cent of private renters aged 44 or under.
A similar percentage of renters are single occupiers in both parts of the rental market.
A higher proportion of the wider PRS is let to families than BTR, but the report insists that this constituency is now a key target of BTR, with the growth of the single-family sector defined as low-rise individual family homes for rent.
Ian Fletcher, Director of Policy at the British Property Federation, comments: “This research continues to reinforce that Build to Rent homes cater to a diverse tenant base, comparable to that found in the private rented sector.
“BTR is delivering well-designed and professionally managed homes that provide value for money for tenants with its extensive range of amenities and long secure leases.
“BTR has rapidly established itself as an important and growing part of the housing market and continues to evolve to provides homes for a wide range of customers. Its diversification out of core cities and into single family housing demonstrates its increasing appeal and ability to cater to housing need.”
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