Love to Rent takes a look behind the rapid growth of the suburban Build to Rent sector. What are the joys of being in the ‘burbs and what’s behind the boom.
Supply and demand
The UK housing market is facing major issues; most pressing is there is lots of demand and not enough supply. As well as causing issues in the homebuyers’ market, the effects are spreading to the rental market, as homeownership levels fall creating an increase in renters. To curb the crises, planners and politicians are drawn to innovative solutions to provide affordable accommodation that offers quality housing.
The pandemic effect
The difficulties in this sector have been exacerbated by Covid-19 and the effect it has had on our work and home lives. There has been a noticeable shift towards people looking to move from the cities to the suburbs with more space and gardens as their primary motivators.
How to help with demand
A viable option to cope with this swing from city to suburb has been through Build to Rent. New developments are emerging all over the suburbs to deal with some of the biggest challenges renters face. Even after lockdowns lifted, renter behaviour still shows that tenants are keen to enjoy larger suburban homes. This is possibly one of the reasons behind the rapid growth of Build to Rent, with the number of planning permissions submitted increasing to 52% during the pandemic year.
What is behind the Build to Rent boom?
As a business, Build to Rent is a cost-efficient way of building homes on a large scale. Unlike the traditional housing market, Build to Rent has a strong emphasis on community-based living, making it popular with many local planning authorities who are more amenable to granting development permission.
What are the benefits for tenants?
There are many benefits to tenants, but one that stands out is costs. Build to Rent developers are constructing high quality housing on mass, which allows them to work out economies of scale, keeping rent affordable. Not only that, tenants are able to afford properties that are of superior quality; more luxurious, more high-tech features, more sustainable and more desirable.
Looking to the future
Increased growth in the Build to Rent sector is predicted because tenants, developers and local authorities are all set to gain. With more regulations set to push private landlords out of the market, there’s a strong sense the sector will keep growing. As households get busier, it is likely that the community aspect will become more widely acknowledge and sought after, especially in the suburbs. With people increasingly time-poor, these valuable conveniences, such as 24/7 security and fast repair services, will appeal to a wide range of tenants. In fact, according to CBRE data, investment in UK Build to Rent totalled £3.5bn in 2020 and is predicted to rise to £7bn a year by 2025.
Why the boom in the suburbs
As the age of tenants increase, the desire to live in the suburbs also increases, particularly for the over 35 market. Tenants want more space for home working, have less of a need to commute, want high amenity levels and want to put down roots without the need for a mortgage as many can’t afford homeownership. There are currently around 5,000 Build to Rent homes on suburban schemes across the UK with a further 8,600 homes that are under construction or in planning.
Settling in the suburbs in a Build to Rent home is all about choice. Some renters may be changing jobs, moving areas or separating from partners. Others may want to downsize but still want the lifestyle of living in a house over a city apartment. Some Build to Rent houses have private gardens, which is very important to many tenants. Whatever the reason, there is now a huge selection of suburban houses to choose from. Just take a look at the Love to Rent search facility to find what’s right for you.
Check out the stunning homes by Simple Life by click this click Stunning homes in the suburbs
Advantages of suburban living
- Value for money: compared to the city, suburban living is much cheaper. Generally you will find more space for less money.
- Increased space: Not only will you find your money goes further in the suburbs allowing you a bigger property, but there is generally a feeling of more space in the suburbs.
- Increased choice of schools: there’s normally more of a choice of schools in the suburbs, which is why many families tend to relocate from the city.
- Fresh air: more local parks, more access to woodland and more chance to enjoy the trees and wildlife is a huge benefit of living in the suburbs.
- Peace and quiet: cities tend to have more of a buzz than the suburbs but are also noisier leading to a more stressful home life.