A photo of the Leeds canal with surrounding residential properties

Build-to-rent property investment

Why should you invest in build-to-rent property?

  • High-quality rental homes fully furnished and designed for renters
  • A sector that is growing year-on-year as tenants increasingly want more from their homes
  • Multi-occupancy accommodation has high occupancy rates and strong rents
  • Planning approvals for build-to-rent are on the rise as part of the government’s housebuilding drive
  • Build-to-rent is moving its focus away from primarily London and towards the UK’s regions

Invest in the growing build-to-rent sector to expand your assets and attract the best tenants

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BuyAssociation is an award-winning property investment consultancy that provides access to first-class, off-market developments before anyone else.

Since our launch in 2005, we have developed a high level of knowledge and expertise in the UK property market, establishing strong connections with some of the country’s most renowned developers and connecting them with thousands of our investor clients. We deal with a variety of property types, from HMOs to holiday lets, and from off-plan to completed properties, along with build-to-rent and traditional buy-to-let opportunities.

We always seek worthwhile investments that offer high yields and capital growth, as we know what matters most to our clients.

To benefit from our reliable, consultative advice and opportunities, contact us today and let us help you on your investment journey. You can also take a look at our current portfolio of residential investment properties.

An aerial view of Manchester build-to-rent properties

What is a build-to-rent property?

Build-to-rent (BTR) is also sometimes referred to us multi-family accommodation, and it describes a property development that has been designed for the sole purpose of being rented to tenants. Normally, there are at least 50 units per block, which can be owned and managed by one landlord, or by multiple landlords within one building.

These units appeal to a broad mix of tenants seeking to live in high-quality homes with a community feel. There are normally additional amenities included, such as a concierge service, communal meeting and work spaces, outdoor areas exclusively for tenants, and even a gym, cinema or creche facility. Because of these added extras, tenants tend to choose build-to-rent as a lifestyle choice, often staying put for longer which creates more stability for both the tenant and the landlord.

For investors, build-to-rent can offer a strong, sustainable investment property that sees consistently high tenant demand, and commands higher rents as a result. The developments tend to be located within sought after city or town centre locations across the UK.

Build-to-rent

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Why invest in build-to-rent?

Since the introduction of the build-to-rent scheme, this model of living has gone from strength to strength and is one of the fastest-growing spaces in the rental sector.

The level of investment into the sector has been multiplying consistently year-on-year, with more data available here. This is a good indication of the future growth of the asset class, as it boosts much-needed rental supply while offering a more modern and desireable option for the growing number of tenants in the country.

Below are some more reasons to consider investing in build-to-rent:

  • Solving the housing crisis

    Build-to-rent developments create an entire community for a large number of households, making it a more efficient tool for solving the UK’s housing crisis. Increasingly, BTR developers are looking away from London, where the sector first began to evolve, and we are now seeing huge growth across the UK’s regional towns and cities. This is being led by the likes of Manchester, Birmingham, Sheffield, Leeds and Liverpool, where tenant demand is particularly high and top-quality city centre accommodation is seeing significant demand from tenants.

  • Government funding

    In correlation with the undersupply of homes in the private rented sector, the government has allocated funds towards the development of build-to-rent properties. Under the Labour government, the creation of new homes of all tenures is high on the agenda. While previous tax incentives employed by the government are no longer in place, the funding pot put forward is expected to stimulate continued growth the sector, while a loosening of planning restrictions should also provide a boost.

  • Longer tenancies

    Although the build-to-rent model enforces extra security for tenants, the long-term tenancies are also highly beneficial to investors. By having a tenant occupy your property for a longer period of time, the risk of void periods is reduced, enabling you to maximise the return on your investment in the long term.

  • High tenant demand

    The niche approach to community living that the BTR sector offers is something that many residents, old and young, are attracted to. Tenants are drawn not only to the additional facilities and amenities on offer, enhancing the overall quality of living, but also to the concept of living in a rental community. With shared gyms, cinemas, games rooms, saunas and more, build-to-rent builds solid communities and relationships among tenants, which is where it can differ from traditional buy-to-let.

Why are tenants attracted to build-to-rent properties?

Locations: Developments designed solely for rental purposes are carefully placed in focal areas. Many leading developers will look at thriving cities and towns to ensure maximum tenant need for their build-to-rent properties.

Quality: In general, a build-to-rent property is ideal for tenants who wish to benefit from luxury living. Through the inclusion of contemporary amenities, appealing communal spaces and additional facilities, these residential properties are particularly attractive to tenants.

Simplified tenancies: Build-to-rent homes normally feature long-term tenancies, sometimes with reduced deposits and no agent fees.

On-site management: With these developments containing so many households, many properties in this sector have on-site management, making it more straightforward and efficient to make any requests or reports for maintenance.

Sociable spaces: One of the elements that the scheme looks to incorporate is the concept of co-living, which shapes the BTR model. Many of these developments embrace shared facilities, such as socialising and co-working spaces, in a bid to create a sense of community.

Stable rents: To ensure that rents aren’t increased unfairly, build-to-rent tenancies lay out stable rent costs, with a clear explanation of how prices could increase.

Purpose-built for renting: The residents of a build-to-rent development get to experience a newly constructed home, a purpose-built space that offers a sense of community and a deluxe lifestyle.

  • A large residential building in Salford, Manchester
a large build-to-rent property in development

Where are the main build-to-rent locations?

Build-to-rent developments tend to be placed in and around major cities, where high occupancy rates can be guaranteed, and tenants can gain access to transport links, work settings, schools and local facilities.

London is the UK’s main build-to-rent hub at the moment, but the balance is slowly shifting as developers place more emphasis on the regions. Still, the capital offers excellent investment credentials in terms of strong tenant demand, excellent jobs market, international accessibility, and a future-proof outlook as the most sought after city in the country.

Birmingham, often known as the UK’s second city, has a fast-growing build-to-rent sector, with a huge and rising number of projects under construction and completed. The city will now be the end of the line for the country’s HS2 high-speed train line, meaning investors are flocking to the city ahead of the delivery of the new infrastructure, making it a key build-to-rent hotspot.

Manchester is widely recognised as having one of the country’s strongest housing markets, with consistently above-average price growth, and it has been named as the best city to invest in by a number of sources thanks to its strong rental market. Build-to-rent is a burgeoning sector in and around the city, helping it to keep up with the rising tenant demand.

Leeds is known for its world-class universities and wide range of opportunities for graduates, making it a favourite among tenants. Because of this, more developers have been targeting the city for build-to-rent over recent years, and the number of units is steadily growing.

Liverpool is a city offering strong rental yields to landlords thanks to its low property prices and high proportion of renters living there. The city has undergone significant regeneration, with areas around the waterfront becoming particularly appealing to tenants; and build-to-rent developments are rapidly becoming more commonplace in the city as a result.

The Axium, a modern apartment development in Birmingham

Is build-to-rent the future of the private rented sector?

There’s no doubt that build-to-rent has grown from being a relatively niche sector in the UK to one that is expanding more rapidly than any other housing type at the moment.

For property investors and landlords, this is an important shift that can help shape your investment choices in the future, whether you’re looking specifically at build-to-rent or would prefer to focus on another type of residential investment, such as HMO, buy-to-let or student properties.

The standout difference in build-to-rent is what it offers for the tenant, and how this appears to be shaping tenant preferences and expectations in their accommodation. The focus is on offering higher quality homes that are more energy efficient, often furnished, with added extras ranging from communal office space to shared places to socialise, or on-site gyms and other leisure facilities. These trends can be translated to most property types, from offering a high-end HMO with furniture included, to investing in a single buy-to-let property within a brand-new block to offer the highest level of energy efficiency.

If current patterns continue, the build-to-rent sector is certainly set to grow and flourish, and it could change the face of private renting as it becomes more dominant.

Find build-to-rent property for sale by speaking to our investment consultants today

At BuyAssociation, we specialise in bringing together investors and property developers at the earliest stages of development, with exclusive access to some of the most exciting property investment opportunities in the UK’s top-performing locations.

If you’re ready to take the next step on your property investment journey, or you just want to see what your options are when it comes to location or investment type, fill in the form and one of our experienced property investment consultants will get back to you.

No pressure, no fees

We understand that investing in property is a big decision, so we will never bombard you with calls or pressure you into making a decision. Instead, our team can offer you advice and up-to-date knowledge on housing market trends, property investment prospects and how to find the best location, while also giving you access to our exclusive property investment deals if you decide to take the next step. All our services are completely free of charge for investors, with full transparency throughout the process, and no hidden fees.

Alternatively, call our UK office today on +44 (0) 333 123 0320 (open 9am-6pm GMT) and speak with one of our experienced property investment consultants.

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