Developers looking to deliver best-in-class build-to-rent schemes can now apply a formula for maximising resident happiness.
Research published by Knight Frank says the optimum BTR scheme offers homes with an average size of 720 sq ft (67 sq m) and access to seven amenities – such as lounges, gyms and terraces – at sites with decent shops and healthcare services plus five bus stops and a train station within a 15-minute walk.
Resident experience is also impacted by the ESG credentials of a scheme. High-scoring schemes had an EPC rating of B or above, low carbon emissions and energy costs of below £4.70 per sq m on average.
Knight Frank, which has published its BTR Resident Experience Index in conjunction with develop Moda Living, quizzed residents across 247 UK schemes and found that satisfaction reduced where units were smaller with access to few amenities and local services – see table below.
Researchers identified 21 unique social and economic indicators, grouped into six categories, which they believe influence residents’ experience of living within a BTR development. The six categories are quality of scheme, affordability, accessibility, sustainability, health and wellbeing, and tenant satisfaction, and include features such as amenity provision, walkability, energy costs, energy efficiency, air pollution and local crime levels.
A clear link was found between higher quality, well-located and sustainable schemes and overall resident satisfaction. Knight Frank ranked schemes out of 100, with those scoring highest (70 or over) being grouped in band A, with bands reducing in 10-point increments down to band E (30 or below).
Lizzie Breckner, head of BTR research at Knight Frank, said: “The significance of resident experience in BTR cannot be understated. Our research shows that resident experience drives operational performance by maximising occupancy and income while also reducing costs. This analysis establishes what best-in-class looks like by identifying commonalities between the top rated schemes.”
| Band A | Band B | Band C | Band D | Band E | All BTR | |
| SCHEME QUALITY | ||||||
| Number of amenities | 7 | 5 | 4 | 2 | 2 | 4 |
| Amenity score | 15 | 11 | 8 | 5 | 4 | 9 |
| Size of unit | 67 sqm | 62 sqm | 61 sqm | 59 sqm | 47 sqm | 60 sqm |
| AFFORDABILITY | ||||||
| % of local PRS households who can afford rents (2 bed flat) | 47% | 63% | 70% | 72% | 92% | 67% |
| Average energy cost per m2 | £4.64 | £5.50 | £6.18 | £7.41 | £11.09 | £6.46 |
| ACCESSIBILITY (number of amenities within a 15-minute walk) | ||||||
| No of bus stops | 5 | 3 | 3 | 2 | 2 | 3 |
| No of train stations | 1.2 | 0.9 | 0.9 | 0.7 | 0.8 | 0.9 |
| No. of primary shops and services | 58 | 55 | 53 | 53 | 48 | 54 |
| SUSTAINABILITY | ||||||
| EPC energy efficiency score | 84 (B) | 83 (B) | 82 (B) | 79 (C) | 72 (C) | 81 (B) |
| Environmental impact (CO2 score) | 91 | 89 | 87 | 83 | 75 | 86 |
| Air pollution (tonnes / km2) | 39.0 | 39.1 | 48.6 | 43.1 | 39.1 | 42.8 |
| HEALTH & WELLBEING (number of amenities within a 15-minute walk) | ||||||
| Schools & colleges | 1.9 | 1.5 | 1.6 | 1.6 | 1.3 | 1.6 |
| Green spaces | 2.7 | 2.6 | 2.5 | 2.5 | 2.3 | 2.5 |
| Healthcare | 4.0 | 3.4 | 3.3 | 3.5 | 3.1 | 3.4 |
| Museums, art galleries, theatres and cinemas | 1.1 | 1.1 | 1.4 | 1.1 | 0.7 | 1.2 |
| TENANT SATISFACTION (scores out of 5) | ||||||
| Overall satisfaction | 4.5 | 4.4 | 4.2 | 3.8 | 3.4 | 4.2 |
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