Tenant demand for build-to-rent homes has more than quadrupled since February 2019, driven by greater availability and awareness of the sector.
The HomeViews 2023 Build to Rent Report, produced in partnership with Rightmove, analysed 11,000 verified resident reviews collected over four years and covered 89% of completed rental-only developments in the UK.
For the third year running, residents in BTR schemes rated their homes higher than owners or private tenants in new-build homes. HomeViews started collecting reviews in 2018.
However, ratings dropped for the first-time in 2022 as the cost-of-living crisis took effect.
Rory Cramer, chief executive and co-founder of HomeViews, said: “2022 was a challenging year for both tenants and the rental housing industry. Even historically strong performers like the BTR sector felt the impact of factors like rising costs, rent increases and staffing shortages, and resident ratings dipped accordingly.
“However, BTR apartments remain the country’s most popular new homes, and merit more support from planning authorities to counter the delivery slowdown we saw towards the end of 2022 as tough economic conditions hit the wider construction industry.”
The report also said single-family housing developments do not achieve the same high ratings as BTR apartment schemes on HomeViews, and so have also contributed to lower overall scores for BTR.
However, single-family housing is performing well when compared with ratings from owners and private tenants in comparable new-build homes.
The report also assessed the performance of office-to-resi BTR schemes when compared with purpose-built schemes and found that conversions perform at a similarly high level, primarily attributed to their design.
The report further highlighted that service-based features, such as being in an area with good transport links, well-connected and professionally managed BTR schemes generate the most interest from prospective tenants, while schemes that highlight physical features such as a pool, cinema or café generate less interest per listing.
Priorities for tenants in different cities vary. The report found that a BTR listing in Manchester highlighting a gym generates more attention from tenants than an average BTR listing. However, a gym is less important to tenants in London and Birmingham.
Tim Bannister, director of property science innovation at Rightmove, said: “While BTR is still a small proportion of the overall rental market, there has been significant growth in the number of tenants considering a BTR home in line with its increasing availability.
“The gap between supply and demand in the private rented sector has significantly widened during the pandemic, making it a real challenge for many renters to secure a home, while we know from our own search data what tenants are looking for, for example, a home that allows pets or comes with bills included.
“As BTR availability grows, there is an opportunity to increase its appeal to the mass market of renters looking for an available home to rent with the amenities that are most important to them.”
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