Oliver Hazell, Senior Account Director at Cavendish shared his optimistic perspective after attending the recent Bisnow conference on Build to Rent, “Despite a slowdown in the traditional for-sale residential market, compounded by rising interest rates, the BTR sector remains buoyant in a difficult economic climate. Existing PRS stock is beset by issues around poor-quality accommodation – damp, mould, and energy inefficient as examples – which is a problem that BTR does not have. BTR is purpose built, of higher quality, and built to EPC C or higher standards.

1. What is Build-to-Rent (BTR)?
It’s a sector of the housing market where properties are constructed with the specific intention of being rented out, rather than sold.

2. What’s the current buzz?
The BTR sector is growing and attracting attention! A recent event, the Bisnow Build to Rent conference, highlighted its optimism. Plus, a notable development in Wembley Park showed the potential of BTR.

3. So, how’s the BTR sector doing?

• Grown by 28% in the last five years.
• Despite some challenges like increased construction costs and labour shortages, it still grew by 9% between Q1 2022 and Q1 2023.
• Outside of London, the number of BTR homes under construction has doubled.

4. BTR vs Traditional Property Market:
While the usual “for-sale” property market is slowing down due to economic challenges and rising interest rates, BTR is shining bright. Why? BTR homes are modern, built for purpose, of higher quality, and more energy-efficient (meeting or exceeding EPC C standards).

5. What’s special about the BTR business model?
The goal is to keep properties occupied with long-term renters. This means a big emphasis on customer satisfaction. Unlike traditional rentals, which might focus on short-term income, BTR looks to provide homes where residents want to stay long term. If a tenant needs to relocate for work or personal reasons, the hope is they choose another BTR property.

6. What’s the key to BTR’s success?
It’s all about the resident’s experience. The BTR sector is even hiring from the hospitality industry to ensure top-notch service, showing they really prioritize making residents happy.

7. Does “Build-to-Rent” capture all this magic?
While the name does describe the concept, there’s a belief that it doesn’t fully capture the quality, amenities, and superior customer focus of the sector.

8. Politicians & BTR:
Not every politician is familiar with BTR. This means there might be some misunderstandings, especially with policies that lump all rental properties together, regardless of their size or business model. For example, the new Renters (Reform) Bill doesn’t differentiate between a small landlord with one property and big BTR projects, which could be an issue.

9. Want to know more?
Cavendish is conducting a survey to find out how MPs view the BTR sector, especially with the new bill in mind.

Thinking of investing in UK property? The BTR sector could be a smart move given its growth and focus on long-term rental. Just remember, like all investments, it’s crucial to do your homework and understand the market!