Build to rent (BTR) refers to the emerging sub-market in private rented residential stock, designed specifically for renting rather than for sale, typically owned by institutional
investor
An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Type ...
s and managed by specialist operators.
Growth in the UK market
In October 2016, it was estimated that only some 8,000 units had been built with a further 15,000 units under construction. To date, the majority of completed projects have come forward in
London
London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
and the major provincial cities such as
Manchester
Manchester () is a city in Greater Manchester, England. It had a population of 552,000 in 2021. It is bordered by the Cheshire Plain to the south, the Pennines to the north and east, and the neighbouring city of Salford to the west. The t ...
,
Liverpool
Liverpool is a city and metropolitan borough in Merseyside, England. With a population of in 2019, it is the 10th largest English district by population and its metropolitan area is the fifth largest in the United Kingdom, with a populat ...
and
Sheffield
Sheffield is a city in South Yorkshire, England, whose name derives from the River Sheaf which runs through it. The city serves as the administrative centre of the City of Sheffield. It is historically part of the West Riding of Yorkshire a ...
. Construction is now underway in
Birmingham
Birmingham ( ) is a City status in the United Kingdom, city and metropolitan borough in the metropolitan county of West Midlands (county), West Midlands in England. It is the second-largest city in the United Kingdom with a population of 1. ...
and
Leeds
Leeds () is a city and the administrative centre of the City of Leeds district in West Yorkshire, England. It is built around the River Aire and is in the eastern foothills of the Pennines. It is also the third-largest settlement (by popula ...
. The UK Government is reportedly encouraging the sector's growth.
By September 2019 the number of units either built or in construction was reported to have increased to 35,000 following large developments by a number of firms report in the media.
Build-to-rent is the most contemporary development in the
private rented sector
The private rented sector (PRS) is a classification of United Kingdom housing tenure as described by the Ministry of Housing, Communities and Local Government, a UK government department that monitors the national housing supply.
Other classifica ...
(PRS) and offers housing across the full spectrum of privately rented accommodation in terms of scale and service offering, often with
affordable housing
Affordable housing is housing which is deemed affordable to those with a household income at or below the median as rated by the national government or a local government by a recognized housing affordability index. Most of the literature on af ...
being integrated through discounted market rental homes.
Criticism
Tenants in BTR properties typically pay an 11%
premium
Premium may refer to:
Marketing
* Premium (marketing), a promotional item that can be received for a small fee when redeeming proofs of purchase that come with or on retail products
* Premium segment, high-price brands or services in marketing, ...
over other properties in similar locations, according to one study.
United States
Haven Realty is a national leader with a portfolio of 35 build-to-rent communities valued at more than $1.2 billion .
See also
*
Buy to let
Buy-to-let is a British phrase referring to the purchase of a property specifically to let out, that is to rent it out. A ''buy-to-let'' mortgage is a mortgage loan specifically designed for this purpose. Buy-to-let properties are usually residen ...
References
{{reflist
Housing