Build-to-Rent popularity continues to grow
The UK’s Build-to-Rent (BTR) sector has gone from strength-to-strength in recent years. After gaining some £2 billion of investment to the UK in the first nine months of 2019 alone, to bring the five-year total invested in it to £10.6 billion, it appears that even more investors are keen to get in on the action.
As the BTR sector expands and becomes a larger part of the UK’s construction and rental industries, other businesses are working to promote and support the sector that will soon provide thousands of homes to tenants across the UK. A new platform has launched to help keep BTR developers up-to-date with what tenants expect, need and want.
This service will likely prove beneficial to all parties involved from investors, to developers and the eventual tenants. With BTR homes typically more expensive to rent than those homes traditionally on offer in the popular Buy-to-Let (BTL) sector that is currently the backbone of the Private Rental Service, (PRS) this new service will likely prove popular.
How the new BTR service works
Love to Rent has launched as new service for the up-and-coming BTR sector. Only marketing BTR properties to tenants, it not only showcases what’s available to those looking for new rental home but it works with the BTR developers and management companies, by telling them what tenants considering a BTR home really want.
According to research, BTR properties can command monthly rents that are up to 9% higher than traditional BTL properties. However, to ensure that tenants are happy paying a premium, Love to Rent are there to make sure the newer BTR homes are designed in a way that encourages more demand for them.
“Build to Rent properties are the future of renting in the UK – and Love to Rent will help ensure they stay at the forefront of what customers are demanding,” said Love to Rent Founder and CEO, Anne-Marie Brown. “Build to Rent developers will have the opportunity to understand exactly what different people in different areas really want from their property.”
How BTR differs from BTL
Although Build-to-Rent and Buy-to-Let properties ae both part of the PRS that provides homes for the growing number of tenants across the UK, there are some notable differences. One of the main ones is that while BTL properties are typically in invested in by people who know the area and what their tenants want, when it comes to BTR, they tend to be funded through bigger investment funds or businesses.
That can mean that those who manage the BTR buildings might not have that local connection that can help when a landlord is assessing and accepting new tenants. However, just as Love to Rent is helping to bridge that gap and connect the two parties, Rent Guarantor is also a useful service in the BTR industry.
That’s because we can provide business backed Rent Guarantors where tenants are unknown and if there’s any uncertainty over their income or ability to pay rent.
As the UK’s PRS sector expands further and diversifies from the more traditional offerings, our proptech Rent Guarantor service can provide peace of mind for investors, landlords, letting agencies and tenants. That’s something that will help ensure the future of the PRS is secure and that tenants will live in the type of home they want, with all the amenities and services they ned and expect.
