BUILD TO RENT IN LONDON
Build to Rent (BTR) refers to a type of real estate development in which an investor or developer builds residential properties specifically designed for rental purposes. In contrast to traditional housing developments where individual homes or units are sold to individual buyers, the entire development in a BTR project is designed to be rented out to tenants.
BTR properties are often multi-unit apartment buildings or complexes that offer a range of amenities and services, such as on-site property management, communal spaces, and shared facilities like gyms, swimming pools, and event spaces. BTR developments are typically built in areas with high demand for rental housing, such as urban centers and areas with limited rental stock.
We discussed all things build for rent in London with Homeviews on our first episode of the ‘Interior Insider’.
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HOW HAS THE BUILD TO RENT LONDON MARKET DEVELOPED?
The build to rent market in London has seen significant growth in recent years, driven by a number of factors including a shortage of affordable housing, changing attitudes towards homeownership, and the increasing demand for high-quality rental properties.
According to data from the British Property Federation, the number of BTR units completed or under construction in London increased from just over 4,000 in 2017 to over 21,000 in 2021. The majority of these developments are concentrated in central London and other high-demand areas, such as East London and the Thames Gateway.
One reason for the growth of the BTR London market is the availability of financing and investment from institutional investors, such as pension funds and real estate investment trusts (REITs). These investors are attracted to the steady income streams and potential long-term capital appreciation that BTR developments can offer.
Another factor driving growth in the build for rent market is the changing preferences of renters, particularly younger professionals who are increasingly looking for high-quality, well-designed rental properties that offer a range of amenities and services. Build to rent developments are often designed with these preferences in mind, offering features such as communal spaces, 24-hour concierge services, and on-site gyms and swimming pools.
Overall, the BTR market in London is expected to continue to grow in the coming years, as developers and investors recognize the potential for long-term income and capital appreciation in this sector. However, there are also challenges to overcome, including the high cost of land and construction in London and the need to balance profitability with affordable rental prices. We have many new and exciting projects based in London throughout the rest of the year.
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WHAT ARE THE KEY FEATURES OF A GOOD BTR DEVELOPMENT IN LONDON?
There are several key features that make a good build to rent (BTR) development in London. These include:
Location: A good BTR development should be located in an area with high demand for rental properties, such as close to employment hubs, transportation links, and local amenities like shops, restaurants, and entertainment venues. For example, One of our successful projects, 8 Water St, is based in Canary Wharf. Canary Wharf is a hub for bankers, investors, real estate but also with the new development full of places to shop and eat, it’s a place for everyone.
Design and layout: A well-designed and laid-out BTR development can maximise space and create a comfortable living environment for tenants. The development should feature communal areas, such as gyms, outdoor spaces, and lounges, as well as private spaces like balconies or patios for individual units.
Quality construction: A good BTR development should be constructed to a high standard, using durable and sustainable materials that require low maintenance. This can help to reduce costs and minimise disruption for tenants.
Amenities and services: BTR developments should offer a range of amenities and services that make living in the development more convenient and enjoyable. This could include features like concierge services, 24-hour security, on-site maintenance, and communal spaces for events and socialising. AGC BTR works on the communal and shared spaces as well as the individual apartments. We did this on our project 8 Water St. The development boasts flexible communal areas including; a lounge, self-service bar, screen room, private dining room and an expansive roof terrace (the largest outdoor space in the Vertus portfolio) all carefully curated and designed by us.
Flexibility: A good BTR development should offer flexible rental terms and leasing options, allowing tenants to choose the length of their lease and giving them the option to renew or extend their lease as needed.
Affordability: While BTR developments can offer high-quality living environments, they should also be affordable for tenants, particularly in London where rental prices can be high. This could involve offering a range of unit sizes and pricing options that cater to a variety of budgets and income levels.
Overall, a good BTR development in London should provide tenants with a comfortable, convenient, and affordable living experience, while also offering landlords the potential for steady income and long-term capital appreciation.
OUR BUILD TO RENT SERVICEs
With our multifaceted interior design service and award-winning team of creatives, we have built a reputation that has defined the benchmark in aspirational living. At AGC, we aim to provide a BTR solution by challenging the norm and pushing boundaries. Calling on relevant expertise from our portfolio of interior brands, we can provide you with a unique proposition by offering interior architectural, show home and furniture range design, all under one roof.
As innovators, creators and thoughtful furniture makers; we are passionate about your project ambitions and are dedicated to inventing and delivering a stand-out scheme for your residential investment which is as functional as it is alluring. With our sympathetic values, we are increasingly obsessed with our ability to contribute to a sustainable future for Build-to-Rent by delivering quality and considered surroundings to your residents. Maximising your return and with our quality guarantee, we are as invested as you, supplying a superior product with the future in mind.
At AGC BTR, we love to keep on top of the latest design trends in BTR developments, and our futuristic approach means that we are always ahead of the curve.
To discuss your BTR development, get in touch with our team. You can slide into our DM’s here BTR@agofc.com, or give us a bell here +44 (0)20 3651 3325