Could 2022 be the year of Build to Rent?

UK rental guarantor service Housing Hand has pointed to the Build to Rent (BtR) sector as one of the key housing trends of 2022.
Key chain within a box

UK rental guarantor service Housing Hand has pointed to the Build to Rent (BtR) sector as one of the key housing trends of 2022. As renters return to cities and embrace the urban lifestyle once more, developers and investors are racing to meet their needs through a range of creative new schemes.

James Maguire, head of sales and business development at Housing Hand, commented: “2022 will be the year that the Build to Rent sector finally comes into its own, as the market matures in multiple ways. It is perhaps unsurprising that tenants are embracing the opportunity to live in homes designed to give them a superior living experience. And this demand is driving developers and investors to build more and more BtR homes – as is the fact that tenants in these properties often stay for longer and pay higher rents.”

Research by ideal flatmate looked specifically at the cost of Build to Rent accommodation compared to renting privately in a buy-to-let property. The data showed that Build to Rent was on average 15% more expensive. But with added extras such as roof gardens, gyms, resident lounges and plenty more included, and often the price of bills too, it’s fair to say that BtR residents usually get more bang for their buck.

Housing Hand is keen that the premium price tag that Build to Rent homes tend to command shouldn’t be a barrier to renters. This is also where the company’s Depositless renting service comes in. Available as part of the Housing Hand guarantee, it enables working professionals and students (both domestic and international) to move into a Build to Rent home without needing a deposit – and they can even pay the fees for the service monthly.

Already established as the UK’s leading rental guarantor service, Housing Hand is now offering Depositless renting as a means of making the UK rental sector more accessible. The service provides landlords with the assurance that they won’t miss out on any rent payments, even if the tenant defaults, while allowing a broader pool of renters to access BtR homes.

Cities such as Manchester, Liverpool and Brighton are attracting plenty of investment in BtR schemes, according to Savills. So much so that it is homes outside of London that are driving the construction pipeline. The year to Q3 2021 saw construction begin on 12,000 Build to Rent homes in the regions – the highest such figure on record.

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