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How to Invest in Build to Rent

Build to Rent is not a new concept, it has been around since 2012, although it has really started to take off in the last couple of years and is now making the headlines in a big way. 

There is huge potential and opportunity for the Build to Rent sector in the UK given the growth and demand of the rental market.

You may be wondering, what is Build to Rent? And how can you invest in Build to Rent? This blog explains all you need to know…

What is Build to Rent?

Build to Rent is an emerging submarket of privately rented residential property developments built specifically for renters rather than for sale.

The developments are typically owned and managed by institutional investors and professional property development specialists like PLMD Group.

Build to Rent developments are designed to appeal to the rental market as opposed to long-term home ownership. 

Renting a property appeals to many people for many reasons. Some couples prefer to rent together before committing to a joint mortgage and others like to travel and spend a lot of time overseas and so the flexibility of renting suits their lifestyle.

Another reason why the UK rental market is growing is because many people cannot afford to get on the property ladder or choose not to buy property. A recent study revealed that first time buyers spend on average 4 years saving for a mortgage deposit and 22% of those surveyed saved for more than 5 years. With the goal posts moving further away, some people give up on saving or choose to rent instead. This is just one of many factors driving the growth of the UK rental market.

What are the benefits of Build to Rent?

Build to Rent developments are designed with renters in mind. Some of the key demographics of renters include young city professionals, pet owners and those aged 55 and over.

There are many unattractive aspects to traditional renting and Build to Rent challenges those. For example, many renters are living in cold and damp properties that their landlord’s refuse to repair, some experience unfair rent increases and high upfront charges, and most renters are on short term leases which do not provide security or peace of mind.

Renters want to live in modern accommodation with good transport links and local amenities. They want the benefits of living in beautiful new build properties and good quality homes without the price tag – and Build to Rent provides exactly that.

To cater to the needs of modern-day renters, many Build to Rent developments come with:

  • Communal spaces
  • Lounges
  • Gyms
  • Event spaces
  • Laundry service
  • Concierge service
  • Commercial spaces

Some developments resemble a hotel more than a home, but this lifestyle and community environment is appealing to many.

There are more benefits of Build to Rent that are beneficial to people other than renters. Build to Rent also:

  • Creates new jobs
  • Boosts the local economy
  • Helps to regenerate rundown areas giving them a new lease of life

How to Invest in Build to Rent

So now that you understand what Build to Rent is, we’ll explain how you can invest in this growing submarket of property investment…

Build to Rent is not just for big name developers. Individual property investors can also leverage the opportunities that the sector has to offer.

Think of passive Build to Rent like being a Buy to Let landlord. You can enjoy the perks of receiving a regular passive income without the hassle of finding tenants or managing the property. At PLMD Group we manage the entire property development cycle from start to finish; from acquiring land or a development site right through to advertising the completed units and finding tenants.

We offer property investors the opportunity to invest in a share of the rental income that we produce from our multiple sites. We have more than 70 real estate assets under management and more than 20 years of experience. PLMD Group is poised for growth with an ambitious goal to increase our portfolio of assets under management from 70+ units to 1000+ units in the next 7 to 10 years. We’re always on the lookout for undervalued real estate and land with the potential to become a high value development and provide a solid return on investment.

If you would like to join us on that journey, please get in touch! We’d love to have a chat with you over coffee and explain what we do in more detail.