ideal flatmate launches Co-Living portal for Build to Rent sector
One of the biggest changes in the rental market since Ideal Flatmate launched two years ago has been the growth in the so-called Build-to-Rent (BTR) sector. Latest figures from the British Property Federation indicate that there are 125,000 BTR units either completed or planned across the UK, including 22,531 completed, 33,454 under construction, and a further 64,052 with planning permission. The split between London and the rest of the UK is about 50:50.
First things first, what actually does BTR mean and how does it differ from traditional rental properties on the market in the Private Rented Sector (PRS)? Put simply, BTR is the term used for residential schemes that are being designed, built and managed specifically for rent, whilst PRS is the phrase used for all privately rented homes on the market in the UK, including Buy-to-Let properties. Whereas these schemes are fairly new in the UK, they make up a far larger proportion of the housing market in the USA and Germany, where the sector is probably five years ahead of the UK.
In the context of the overall rental market in the UK then, the percentage of people living in a BTR home is relatively small. This is a trend that is set to change quickly however. With the current pace of investment in the sector, it is likely to become the norm rather than the exception for how young professionals and adults rent.
Two recent stories highlight the changing nature of the rental market. Last week, the Royal Institute of Chartered Surveyors (RICS) predicted that average rents would rise by 15% over the next five years. A major contributing factor is that small scale, traditional landlords with 2-10 properties are being forced out of the market as a result of tax changes imposed by the government. This is leading to supply shortage which RICS claim will drive prices up even further for renters. Indeed, a further RICS study in 2016 showed that 86% of traditional landlords did not intend to increase their rental portfolios over the next five years.
On the other end of the spectrum, last month L&G announced it’s largest BTR investment to date, as it acquired a huge brownfield site in Woolwich. James Lidgate, Director of Housing at Legal & General Capital, said: “This latest development, our largest BTR acquisition to date, is another step forward for Legal & General in its ambitions to tackle the severe housing shortage that the UK is facing.” It is clear where the major developers see the future of renting in this country.
So what does this mean for Ideal Flatmate and how will these changes impact on our users?
We are excited to be able to announce that we have been working hard with the UK’s largest operators and developers to launch an advertising portal for this rapidly growing sector. The portal, called ‘Co-living, the new renting’ is now live and can be seen here.
As well as being an advertising portal, we will be working with certain developers to explain the benefits that living in BTR properties can bring and running special ‘Buddy Up’ events with them to help users that have matched up on Ideal Flatmate find a suitable home. We have already run a number of these events successfully and are pleased that we have seen some success stories already!
We have personally visited many of the developments and have seen first hand how much renting is changing. Although BTR properties will not be for everyone, and there is still definitely a place for traditional landlords, when you see people living in a BTR property, enjoying the benefits of the co-working spaces, the communal areas and the added extras such as gyms or penthouse balconies, you cannot fail to be impressed.
Ideal Flatmate’s new Buddy Up feature has also gone live with the portal so that flathunters can take our unique matching questions and group up with people already interested in a specific flat. We are delighted that Tipi’s new apartments in Wembley Park and Essential Living’s units in Bethnal Green and Archway are already live on the portal so you can start your search from today via our new portal. It is set to be an exciting few years in this sector and Ideal Flatmate is pleased to be at the heart of the changes.
Why not take a peek at our new Co-Living properties here.
