Revolutionising rentals with affordable and quality solutions
- 30th Nov 23
There’s a growing crisis in the UK of the availability of affordable, high-quality rental homes. This issue is multifaceted with several key drivers contributing to the surge in demand. The current situation is a headache for not only people looking to find a home, but there’s also a lack of understanding about what today’s renters want. Determined to bridge this gap is the Build to Rent sector, as was highlighted by Say Property Consulting, who was commissioned to conduct research on the lack of affordable, high-quality rental homes in the UK. These are the top findings.
Future proof
There is an estimated 50% of households expected to be renting by 2039. In the ten years leading up to 2021, over 1.3 million tenants entered the private rented sector, with 1.18 million new rental tenancies starting on average each year across England and Wales.
Love to Rent say: “We need to act now to ensure the current scarcity of available rental homes doesn’t become a narrative to cause future generations grief. Embracing innovative solutions like Build to Rent is not just about constructing buildings, it’s about paving the way for sustainable, purpose-built communities that not only address the current housing crises but also provide a solid foundation for the future.”
Changing demographics
The demographics of the UK population are evolving, with a notable shift towards the growth and expansion of cities and an increasing preference for renting over homeownership. Young professionals and families are choosing to live in metropolitan areas where job opportunities and amenities are abundant.
Love to Rent say: “We need to reframe the way we think about the rental market. More and more people are choosing this option for lifestyle reasons, and they have high levels of expectations. We need to deliver them properties that they are proud to call home.”
Affordability challenges
Homeownership is becoming increasingly elusive for many, especially first-time buyers and key workers. Soaring property prices, coupled with stringent mortgage criteria, making it difficult for individuals and families to step onto the property ladder. As a result, the demand for rental homes has skyrocketed, leading to a lack of affordable options.
Love to Rent say: “Build to Rent is plugging the gap and offering an attractive alternative to home ownership. Where private rental may not be able to fulfil the need, Build to Rent is offering the opportunity for a solution with many added benefits.”
Private landlords exiting the market
There is a growing number of private landlords leaving the sector, fueled by several reasons. Rising mortgage costs, coupled with changes in tax regulations, have made it less lucrative for individual property owners to continue renting out their homes. Many have opted to sell their properties, exacerbating the shortage of rental homes and leaving tenants with fewer options.
Love to Rent say: “One of the many benefits of Build to Rent is that it is managed by professional management companies, ensuring a high standard of maintenance and customer service for tenants. No more waiting on a landlord to fix a leaky tap or putting up with sketchy WIFI, the Build to Rent sector prides itself on putting the customer experience first and foremost.”
Investing in a solution
The Say report emphasizes the importance of private investment in Build to Rent schemes. These schemes focus on creating and owning high quality affordable rental homes to fill the gap left by departing private landlords. This not only address housing challenges but also improves well-being and social mobility.
Love to Rent say: “Build to Rent developments typically offer longer-term leases, providing customers with increased stability and security. When this is coupled with communal spaces and amenities, fostering a community among residents, the sector offers an attractive solution for now and in the future.”
And finally
As the Build to Rent sector continues to grow, it has the potential to alleviate the housing shortage and provide tenants with the security and quality they deserve. Policymakers, investors and developers must collaborate to further promote and support the Build to Rent model as part of a comprehensive strategy to address the ongoing housing crisis in the UK.