Vanessa Hale
Director, Research
Research from Strutt & Parker, Stanhope and Network Homes
New research from Strutt & Parker, Stanhope and Network Homes, reinforces that the UK is on the brink of a large-scale, commercially developed, owned and operated Build to Rent (BTR) sector.
BTR is defined as residential rental product that has been purpose built by developers/investors who offer high-quality accommodation with greater security of tenure and consistent management, supported by lettings agents and asset managers.
‘Housing Futures: Urban Renters’ takes a look at some of the established BTR markets around the world – including Hong Kong, Germany, Japan, Sweden and the US – and explores what it is that today’s renters need, want and aspire to.
For this research, Stanhope, which recently formed an alliance with Network Homes to deliver BTR across Greater London, approached Strutt & Parker to analyse the profile of tenant demand and the main tribes within the rental market.
The UK private rental market is going through a period of sustained growth, doubling in size to 5.4 million from 2001 to 2014, a trend which only looks set to continue. 48% of those who responded to our Urban Renters survey had been renting the same property for at least the last two years, with 24% of tenants anticipating renting as a family in the future.
Our analysis illustrates that, although the majority may wish to own at some point, a burgeoning group of renters is making the choice for rental over ownership and enjoying the flexibility it provides. While the aspiration to own is still a key motivation for the majority of households, a preference for renting is starting to surface, with 9% of respondents in Greater London preferring to rent.
In addition, we have identified 10 different rental tribes in urban markets throughout the UK. They require a range of rental options from the property industry to support their wide spectrum of needs but the ideal BTR delivery will be well-maintained buildings in an amenity-rich location with good transport links with to support them. We seem to be on the edge of becoming a rental nation and are not talking about Generation Rent, we are now talking about Every Generation Rent.
To download the full report, ‘Housing Futures: Urban Renters’, please click here.