April 06, 2022

UK Build to Rent is Now a Proven Asset Class, But What Is Next for the Sector? - Gerald Eve

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With build to rent now an established asset class, investors are looking to allocate more capital to the sector. Bobby Barnett, partner at Gerald Eve, takes a look at how new dynamics could shape future approaches to the sector.

The past decade has been a period of steady growth for the UK build to rent (BTR) sector, moving from interesting new concept to an established asset class, as the occupational demand for such homes has been proven in markets across the country.

Led by specialist funds and prop cos – often, expertise from more mature markets in the USA and Europe – BTR investment has largely focused on high-quality schemes in prosperous city centres, targeting higher-end customers. Slowly but surely, these assets are proving BTR’s ability to produce the stable target returns that such investors seek.

As BTR has evolved, lessons have been learnt. For example, operators now understand the importance of tech, good customer service, and the right amenities for the location. The pandemic has also underlined the importance of creating a community and having access to external amenity spaces. The professionalisation of the private residential sector (PRS) is certainly improving – though still far from perfect...

To read the full article plus much more insight on build to rent, download the BTR Living magazine below.

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To read the full article

Download our Build To Regenerate - Vol. #2 BTR Living publication