Build-to-rent properties are built specifically with the purpose of renting them out and professionally managing them on a long-term basis. 38% of the UK’s build-to-rent stock is in London (Financial Times, 13.4.18)
Large institutional investors are attracted to the stream of rental revenue that can fund pension commitments. Smaller investors have realised that as the sales market is currently less profitable than it was five years ago, the best route right now to making money in property is via the build-to-rent model.
London’s robust economy provides the perfect setting for premium rental apartments for discerning professional tenants.
Developers recognise that it is not just young professional singles, shares and couples who want to rent in these high-end complexes. Family sized units are common in most projects because London property prices often place some families in a position where long-term renting is a forced decision rather than a lifestyle choice.
These build-to-rent properties also cater for the more nomadic, career-focussed professionals who could afford to buy but prefer the flexibility and absence of responsibility of being able to live in high quality, professionally managed albeit expensive accommodation close to wherever their next job posting is.
Tenants of these build to rent developments enjoy a bespoke management service, often including features such as a concierge, gym, cinema and communal lounges, which all means they have essential lifestyle amenities on their doorstep on return from work.
Larger developers are attracted to big, functionally designed buildings that formerly housed office spaces, as the wide-span structure of the buildings, as well as the existing connections to essential services, lends well to conversion to into modest residential units. These old office blocks are frequently sited in easily accessible locations popular with renters, often with local amenities nearby.
Tenants like build-to-rent developments because of the long, secure tenancies, the excellent standard of fixtures and fittings, and the quality of life that they can enjoy by living in these premium developments.
Investors are keen on build-to-rent because the short-term benefits include strong rental income compared to average rents in an area, whilst in the long term they profit from capital growth and there is the ongoing option to liquidate their assets by selling off the properties either in bulk or individually should they wish to in future.
Thorgills has existing successful relationships with several build-to-rent developers including Street Group, Grainger and IDM Properties. We have outperformed several London-wide agencies in arranging the majority of available tenancies there, and in some developments we have earned exclusive tenant-introduction agreements.
To find out about renting a build-to-rent development in Brentford or the surrounding areas, or if you are planning to launch build-to-rent properties to the market, please contact our Brentford estate and letting agent team on 020 8994 9886 or email us.