A study of 20,000 build-to-rent residents has revealed the tenant demographics behind the largest BTR schemes in the UK.
Couples, sharers, students and professionals continue to dominate BTR lets, providing a stark contrast with the PRS market.
Some 58% of BTR residents are couples and sharers, with single people making up 35% of residents and families just 7%. Looking at the PRS market, couples and sharers make up 41% of lets, followed by single people at 37% and families at 22%.
The study was carried out by Dataloft, alongside the British Property Federation, London First and the UK Apartment Association. Dataloft examined data from more than 20,000 residents in 15,000 flats at schemes from leading operators including Quintain Living, Grainger and Get Living.
BTR tenants on average pay less than a third of their income on rent, broadly in line with the PRS market. Office for National Statistics guidance considers housing to be affordable when tenants dedicate just 30% of their income on rent; the only demographic paying in excess of this in the BTR market is single people, at 32% of their income.
The age of tenants in BTR accommodation is skewed towards younger people, with 75% being under 35 years of age, compared with 66% in PRS.
The study found that the most popular profession for BTR residents was finance/professional services, comprising some 26% of tenants, followed by students at 22% and public sector workers at 18%. In contrast, PRS has a lower proportion of students, with more people working in retail and construction than their BTR counterparts.
The bulk of BTR tenants’ earnings are higher than the average UK median salary of £31,285. Around 55% of residents in BTR homes earn more than £32,000, compared with 36% in PRS.
BTR products are widely acknowledged as a premium rental offering, providing amenities and services that command a higher rent. EG analysis of London BTR rents found an average 21% premium over the PRS market.
However, moves are being made to broaden the sector with the provision of different products, such as suburban housing and key worker affordable homes, to cater to a wider range of renters.
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