What does success look like in Build to Rent?
Analysis of qualitative data from residents tells a broadly positive story about the experience of renting in a new build development in the UK, says Rory Cramer, CEO and Co-Founder of HomeViews, the independent reviews website for the new build sector.
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Across the board, however, tenants living in purpose-designed Build to Rent (BTR) developments rated their experience higher than those renting in Build to Sell (BTS) schemes. Overall, BTR schemes were given a rating of 4.34 out of five by tenants, compared with a rating of 4.13 for BTS developments. Why is this?
Many of the issues we see being raised by owners and private tenants represent problems that BTR operators have found solutions to. The factors connected to higher ratings for BTR developments – communal events, pet-friendly, concierge, building management – are the very areas where shortcomings lead to much lower building ratings elsewhere, especially for older developments.
Another example is unexpected increases in service charges. This a common complaint from new build owners. In contrast, many BTR operators have made their charges transparent, all-inclusive and easy to understand. Unexpected costs for tenants are avoided entirely.
We’ve also seen the importance of only including facilities that residents really want. For example, none of our 10 highest-rated BTR developments have a pool but all have a concierge, resident events and bike storage. Value and Facilities scores are both closely related to overall building ratings, so it’s clearly crucial to balance facilities and the associated cost.
During the recent lockdown, agile BTR operators were able to provide outstanding care for their residents. Connecting with management and other residents, and even owning pets all took on a new importance for residents spending more time at home. One of our highest-rated operators reported higher engagement levels with residents as a result of the new systems they adopted during lockdown.
As the Knight Frank/HomeViews Multihousing report shows, the shift away from home ownership and towards renting is a consistent trend. However, while economic and sociological drivers are clear, we also see that BTR is highly effective at filling the gaps left by the shortcomings of home ownership and the financial barriers involved.
The move towards renting is being expedited by a successful BTR industry responding swiftly to residents’ needs and concerns. We now have the opportunity to draw lessons from BTR successes and push standards higher for all residents across the UK’s new build industry.