On episode 3 of our People & Property Podcast, we recently interviewed Chris Keogh, Director at Court Collaboration. We discussed the benefits and expectations of the build to rent sector in the coming years.
Over the last five years, this asset class has taken hold of the property market, and with more and more people choosing to live in build to rent properties it does not appear that it will slow down anytime soon. Among the benefits of prime locations, in and around major city centres with easily commutable towns and villages, there is a real need and urgency for more quality homes.
As we see an increasingly tech-savvy, young, environmentally aware and sociable millennial generation enter the property ladder, there is now a need for more properties to offer that little bit more. This will increase rapidly when the generation Z enter start to research their options for properties.
Residents are doing more and more research to understand the benefits of saving whilst living at home, renting or seeing if they should use leasing/renting as a long term option. The build to rent properties includes a range of additional amenities on hand 24 hours a day these amenities can consist of an on-site gym, bike storage, pet groomers, coffee shops etc. This generation wants it all, and they want it now!
The article by Bisnow below goes into detail and discusses how Hammerson, property developer is pushing to speed up their journey into this lucrative arena. Hammerson’s journey into the UK’s build to rent market has begun. The company has announced plans to bring forward a build-to-rent residential scheme in part of the former Debenhams store at its 1.2M SF Highcross shopping centre in Leicester. Hammerson is working with private-rented-sector specialist Packaged Living to develop the plans ahead of the submission of a planning application early next year.
With more and more developers and investors battling it out for space in this market, I can only see positive outcomes. No longer is an Englishman’s Home his Castle, but somewhere to live with the flexibility to move and change depending on their situation.
Fewer people are attracted to having a mortgage tied around their neck and the feeling of being trapped in one spot for the foreseeable future, worrying about interest rates and making repayments when they can have short tenancy agreements and almost come and go as they please.
Build to rent is definitely here for the long term and it’s not stopping anytime soon.