SPECIAL: The Rise of Build-to-Rent

Expensive shoe-boxes in the sky?…

Build-to-Rent (BtR) is becoming an increasingly important part of the UK property landscape. Designed for long-term rental rather than private sale, these developments offer tenants modern homes with professional management, communal spaces and flexible lease terms. With home-ownership becoming less accessible, BtR provides a solution for those seeking quality rental accommodation in well-maintained environments. But it comes at a high price. I’ve lived in Build to Rent accommodation before – a rather nice block in Wembley, London right next to the stadium. However for a 1-bed small flat, the £2500pcm price-tag was pretty high – ok it was Wembley, but still. I was just happy that it was the organisation I worked for at the time that was paying for it.

Why is Build-to-Rent Gaining Traction? BtR has seen rapid expansion due to rising demand for rental properties, particularly in cities where affordability pressures make buying a home difficult. Investors are drawn to the model’s potential for consistent rental yields and reduced tenant turnover. Large institutional investors and pension funds are particularly active in the space – recognising the sector’s to potentially deliver long-term, stable returns.

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How Does It Compare to Traditional Buy-to-Let? Traditional buy-to-let often involves individual landlords managing small portfolios, whereas BtR developments are purpose-built and professionally managed. This allows for economies of scale (not necessarily in favour of the occupant), dedicated maintenance teams and a more structured tenant experience. While buy-to-let can offer flexibility, BtR provides the security of a well-run, high-occupancy development that attracts long-term renters looking for reliability and community living.

UTILITY OF THE WEEK. For property investors seeking comprehensive analysis tools, PropertyData provides detailed insights into market trends, property valuations and area-specific data – assisting investors in identifying potentially high-yield opportunities.

Challenges and Considerations for Investors. BtR requires significant upfront capital and careful site selection to ensure demand justifies the investment. Developers must also navigate planning requirements and changing government policies around rental regulation.

Who are M2P? Married2Property are a family-run property company that aims to build social good through property.

As the sector matures, more financial products and partnerships are becoming available to support BtR investment – making it an increasingly accessible option for those looking beyond traditional property models.

As the rental market continues to evolve, Build-to-Rent is set to play a crucial role in shaping the future of housing. For investors seeking stable income and professionalised management, it presents an attractive alternative to traditional investment while meeting the needs of a growing tenant base. However there will always be a place for the more traditional private rental sector – not least because these more corporate setups can be far more costly in rental terms for tenants than traditional Landords. The blocks are very nice (as I can personally attest to) – but it comes with a high price-tag. It’s worth noting that Local Housing Allowance (LHA) rates won’t be anywhere near the rents for these properties. After all, they target one of the most lucrative tenant markets – young professionals.

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And Finally… with Build-to-Rent on the rise, tenants might soon swap chasing landlords for repairs with choosing which on-site gym suits them best – it’s a good job it’s included in the price though…

What do M2P do? Married2Property aims to create social good through by property – by housing more vulnerable groups of people – giving them a stable platform from which to try and improve their lot in life. We also offer Landlords competitive and hassle-free solutions for their property problems.