Why Build-to-rent is an investment boom worth buying into……. – by Jon Bennion-Pedley

Home ownership is no longer even a dream for most millennials in Britain. The cost of property is now such a huge multiple of average annual earnings that a purchased property doesn´t even make the radar of most people in the UK who are under the age of 25. Sad but true – in a single generation home ownership has gone from expectation to impossibility. And smart investors are profiting from that.

The build-to-rent (BTR) sector in the UK grew by 20 per cent annually, indicating the growing demand for such rental homes, according to research published by the British Property Federation (BPF).

By the third quarter of 2019 (end of September), there were 148,046 build-to-rent homes complete, under construction or in planning across the UK, when compared to the corresponding period last year. The number of completed units rose by 31 per cent over the same period to 34,840.

The BTR sector continues to go from strength to strength, with the build-to-rent pipeline growing considerably in the year to September 2019. This is highlighted by the number of units in planning, which has soared by 23 per cent to 77,446.

The average size of build-to-rent developments is also growing, indicating the confidence that investors have in the sector. In Q3 2019, the average size of each completed build-to-rent scheme was 133 units, this increases to 245 units for the schemes under construction, while the average size of schemes in the planning system is higher still at 325 units.

The larger size of build-to-rent schemes underlines the growing importance of build-to-rent in increasing UK residential supply and meeting government house building targets.

Geographically, growth of the sector is spread evenly between London and the regions, with both areas seeing total growth of 20 per cent. The number of build-to-rent units inside the capital and in the regions is also similar to 63,200 and 60,337 respectively. However, in terms of units completed the regions saw the biggest increase, with a significant rise of 41 per cent annually.

You may want to profit from this but you almost certainly don´t want the headache of a gormless, entitled tenant! Investment Owl offers investors the chance to get in early, stay in for seven years, have no management responsibility or risk, and exit having more than DOUBLED your investment.

Interested? Email me to find out more……………..

 

Written by Jon Bennion-Pedley