What should investors in the Build to Rent market be doing during lockdown?
The Build to Rent sector continues to emerge stronger in the UK property market, an indication of its market expansion. Rental growth in London has delivered steady returns to investors, even in down times, while the number of completed Build to Rent homes increased by 42% in Q1 2020 compared to the same period last year (BPF). However, with the demand for rental housing growing, the supply and demand imbalance will remain long after Covid-19, therefore keeping the Build to Rent sector an attractive prospect for investors. The trend is clear: renters are looking for high-quality, well-managed and operated homes, and investors are seeking steady yields.
Build to Rent investors know that the rental market is likely to continue to grow once relative normalcy returns. Their viewpoint should be to always look at the long term. Therefore, using this current time to carefully research what opportunities are being planned and available is essential. Our Strawberry Star schemes are strategically located in key regeneration areas that see high rental demand, well placed to weather most economic storms. I would advise today’s Build to Rent investors to evaluate each proposition with a similar mindset.
A key component of the equation is to consider the local infrastructure, especially in urban city locations. How does the proposed or existing development make the most of, or build upon, local transport and public services for residents? What placemaking, building amenities, and lifestyle services are to be provided in the scheme? Does the team delivering the project possess the end-to-end experience you need, including operational mobilisation, an active and experienced lettings team and an experiential management platform? …