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Build To Rent (BTR) Sector growth in UK

UK Build To Rent (BTR) sector is continuously rising and achieving new heights. Investment
opportunities are very high in this sector due to the rise in demand for rented homes with easy
maintenance. Institutional and Retail Investors are investing Billions of Pounds in this sector for
stable returns for a long period of time…

Growth Factors

  • High rental growth due to high demand and shortage of supply in UK Homes.
  • High Inflation in recent years.
  • People are more interested in rental homes compared to the past due to affordability issues.
  • People are open to moving to different big cities because of better job opportunities
  • People are looking for a high-quality home that meets their needs and a good service in the rental industry
  • Covid-19 has also changed the mindset of people. They are more interested in private rental properties for themselves instead of sharing with other people on a rental basis.
  • UK is a desirable location to live in for people from all over the globe.

Investment in Build to Rent

As per British Property Federation and Savills survey existing investors were particularly active in 2021. However, in addition, the pool of investors looking to access the market is deepening. New Investors are also taking a keen interest in this market and investing in new projects in this sector, a move which has intensified competition to either create or acquire stock.


As per Development Finance Today Magazine big property developers are entering the Build To Rent Sector i.e. Strawberry Star Group, The Harlow development.

The government last December increased housing targets by 35% in 20 cities selected for additional growth. The cities are #London, Birmingham, Liverpool, Bristol, Manchester, Sheffield, Leeds, Leicester, Coventry, Bradford, Nottingham, Kingston upon Hull, Newcastle upon Tyne, Stoke-on-Trent, Southampton, Plymouth, Derby, Reading, Wolverhampton, Brighton, and Hove.

Current Build To Rent Market Status

New analysis from British Property Federation (BPF) shows there are now 212,177 build-to-rent homes in the UK, including both London and the regions, of which 70,785 are complete, 42,119 under construction, and 99,273 in planning.

Penny Davidson, an Associate Director of Residential Valuations in CBRE said: ” The BTR market is gaining momentum and this is further demonstrated with some key changes to our Prime Regional and Other Regional Centre yields.”


How to Invest in Build to Rent

Build to Rent isn’t just for well-known developers. Individual property investors can also take advantage of the sector’s potential. If you want to know more about investment opportunities in the Build To Rent (BTR) sector in London and the southeast, we can certainly help you with that!

At PLMD Group 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 in real estate development & management. We are 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 in this Build To Rent Sector.

If you’re interested to find out more, please get in touch or email our investment team at invest@plmd.co.uk. We would love to tell you more about our exciting investment opportunities! #PropertyInvestment #PropertyDevelopment #Property #UKProperty #BuildtoRent #PropertyFinance #PLMDGroup

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How is Property an Investment Asset?

Investing in property can bring an abundant of benefits to a wide range of stakeholders; banks, private companies, construction companies, and most importantly, property-owners. When investing in property, it is an asset that can provide long-term capital gain as the value of your property, will more often than not, appreciate.

Controlled Asset

Purchasing either land or property is a long-term investment for both the individual investor and financial companies. It is the type of investment you can have complete control over, from purchasing it, to remodeling it, to selling it and increasing the return; a controlled asset. But, if you choose to invest in an asset like trading stocks or shares, the price may fluctuate, which means your return can also fluctuate.

Gearing

Gearing is also another benefit when it comes to investing, generally speaking. It is a concept that involves borrowing funds to invest in an asset, whether it be land, stocks or for commercial purpose.

For example, if you have £100K to invest, it is more efficient to purchase 4 properties worth £25k each, with a £75k mortgage on each, rather than 1 property worth £100k. This is so if the value of the property appreciates by 10% within the next year, you would have made a total of £40k, as opposed to only £10k if you had purchased 1 property.

Gearing is a concept that helps you boost your capital gain quicker, and also build your property portfolio.

Remodeling/Construction

When purchasing a property, it gives you the opportunity to remodel it, which may also increase the property’s value. However, purchasing a building is not the only type of property that is a worthwhile investment. Purchasing land can also be a long-term investment.

Land is probably the easiest type of investment you could acquire, as it requires minimal effort to maintain it. It is also the greatest opportunity to develop your own private or commercial property. This also encourages capital gain, regardless of whether you choose to develop a private or commercial property, as it provides you the option to rent out the building to tenants.

Retirement

Buy-to-let is a popular strategy to prepare yourself for retirement. The ability to sit at home and relax, whilst receiving rental income, will help pay off any outstanding mortgages and financial loans. The key benefit is the capacity for rental income to remain parallel with inflation.

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Commonly, there is a misconstrued perception when it comes to investing – you should  have all the funds available to invest. Although it may be ideal, it is not realistic in this day and age.

Websites such as Crowd Property provides the opportunity for investors, particularly businesses, to receive funding efficiently from other businesses. This may be either for private use, to fund for the construction of a commercial property, or projects.

However, there is the most notable assistance when it comes to investing, which is through obtaining a mortgage. The key long-term benefit of a mortgage is the ability to build your financial portfolio and increase your capital gain, other than the obvious of it being a helping hand to support your investments.

It is often assumed that it may be difficult to obtain property without any financial stress, due to the increase in property prices. But there are several longstanding advantages, as it is an asset that will provide capital growth. The earlier you start, the quicker you receive the longstanding benefits.