This week, from September 30th to October 4th, marks the return of Love to Rent Week, an annual event that raises awareness of the growing Build to Rent (BTR) sector.
This initiative showcases the key benefits of Build to Rent developments, which have been designed specifically for renters, offering a modern alternative to the traditional private rental market.
Build to Rent properties are rapidly gaining popularity due to their emphasis on community, flexibility and sustainability. According to Savills, the sector has experienced significant growth with investments totalling £1.2 billion in Q2 2024. In major cities, Build to Rent homes are rented out 25% faster than pre-pandemic levels, with the average time to let a BTR home being just 24 days.
Anne Marie Brown, Founder of Love to Rent, the first and leading digital marketing platform exclusively for Build to Rent, shares her insights on why BTR is becoming a preferred option for renters across the UK.
She explains, “Build to Rent developments are designed to meet the changing needs of modern renters. The sector offers far more than just a place to live – it delivers a lifestyle that focuses on convenience, community, and high-quality service. As the demand for affordable, flexible, and sustainable housing grows, Build to Rent is setting a new standard for rental properties.”
What is Build to Rent
Build to Rent developments are purpose-built communities that offer professionally managed high-quality apartments and homes, some with a range of amenities like gyms, co-working spaces, and communal areas. These developments prioritise convenience, flexibility, security and a sense of community, making them especially appealing to a diverse range of renters, from young professionals and digital nomads to older generations and families.
What are the main differences from the private rental market?
Unlike older rental properties, Build to Rent homes are designed specifically with the renter in mind, offering high-quality, energy-efficient homes with flexible leases and added conveniences. These purpose-built communities allowing residents to personalise their homes, bring pets and enjoy the freedom of long-term tenancies. Professional management and added conveniences such as on-site maintenance and communal amenities make Build to Rent a unique, hassle-free rental experience.
Is Build to Rent more expensive?
While Build to Rent might initially seem more expensive, this is often due to its all-inclusive nature. Many BTR developments offer packages that include gym memberships, superfast WIFI and on-site security, simplifying budgeting for renters. Additionally, with dedicated maintenance teams and the convenience of comprehensive services, Build to Rent can prove more cost effective in the long run.
Is Build to Rent only for young professionals?
Although Build to Rent initially started with young professionals in mind, it has significantly expanded, particularly in the single-family housing (SFH) market. As demand for suburban living grows, BTR developments are increasingly appealing to families, couples, downsizers and individuals looking for more space.
Research from Knight Frank shows that nearly 50% of UK private renters live in suburban areas, yet only 0.4% of these households are currently served by SFH developments. With predictions that the Build to Rent sector could grow to make up to 35% of all privately renting households, single-family housing is expected to double in the next two years, marking a significant shift in the rental landscape.
What is the lifestyle of Build to Rent?
Build to Rent developments are designed to offer more than just a home – it delivers a community-driven lifestyle. With curated events, pet friendly policies and spaces that promote interaction, BTR developments fosters a sense of belonging and connection. This approach provides renters with far more than just a place to live.
Love to Rent Week will spotlight how Build to Rent is reshaping modern rental experiences, offering renters the opportunity to live in sustainable, community-focused developments.
UK pension fund Nest agrees to invest up to £1bn in build-to-rent
State-backed scheme joins forces with insurer L&G and Dutch fund manager PGGM to build and manage rental properties
The UK’s state-backed pension scheme has agreed a tie-up with insurer Legal & General and Dutch pension fund manager PGGM to invest up to £1bn in build-to-rent properties, in a deal hailed by the UK government as an example of how the country’s retirement savings can be directed towards its homebuilding effort.
The groups are today announcing a partnership with an initial £350mn commitment of combined investment, expected to grow to £1bn in the coming years, to build and manage rental properties on city-centre brownfield sites. It expands on an existing joint initiative between the UK insurer and the Dutch group.
“We can see there’s a critical shortage of housing supply, coupled with increasing demand for high-quality rental homes,” said Elizabeth Fernando, chief investment officer at Nest, the state-backed UK workplace pension fund, which now has assets of £43bn from its 13mn savers.
The tie-up comes as the UK government seeks to unlock billions of pounds of investment from the country’s pension funds to boost the economy.
In July, the government announced the first part of its pensions review. Policymakers have long sought to encourage more pension investment in areas such as infrastructure and housebuilding.
UK pensions minister Emma Reynolds said the announcement “highlights the opportunities for our pensions sector to contribute to our communities and grow the economy”.
“By building more properties, we can extend to our [scheme] members a great investment opportunity while helping to meet this demand and bolster the rental market,” said Nest’s Fernando.
Increasingly, the focus is on so-called defined contribution pension schemes, which are now the mainstream offering for private sector workers, and where the investment risk sits with the saver.
Nest, a DC scheme, was established to support the 2012 auto-enrolment reform that required employers to enrol all eligible workers into a workplace pension scheme. After feedback from its members saying more than half were not sure how much of their savings were invested domestically, it plans to publish a quarterly summary.
L&G has plugged £3bn of capital into the build-to-rent sector, creating more than 10,000 rental homes since it began a partnership with PGGM eight years ago.
The groups said locations for the investment had already been identified but did not name them. PGGM said it would generate stable financial returns for its client PFZW, a pension scheme for healthcare workers.
L&G chief executive António Simões said the latest deal was a “strong step forward in putting pensions to work” and he highlighted the significant gap between housing supply and demand. “Institutional investment has an important role to play, and we expect investor demand in the UK’s build-to-rent sector to continue to grow,” he added.