Godwin Development’s Head of Residential Capital Markets, James Mulcare, explores what the future holds for the UK’s suburban BTR market.
Growing population, declining homeownership, and a swell in the number of households renting across the age spectrum.
There are several reasons – structural, social and even political – that have shaped the increasing propensity to rent in the UK. Of those, declining mortgage affordability – especially in part of the country most in demand – have triggered a shift in attitudes and uptake – of renting. This has led to the rapid acceleration of interest and activity in the suburban Build to Rent (BTR) market, also now known as Single Family Housing (SFH).
To date, BTR in the UK has been known mostly for the high-rise multifamily apartment developments that are now a familiar sight in many major cities. However, with approximately 60% of the country’s privately rented stock consisting of houses, and 1.8 million households with children renting, it is clear to see why institutional investors seeking long-term, secure income see SFH as a huge opportunity. And operators are keen to deliver.
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