Into this growing gap between social housing and home ownership, the build-to-rent model has given property developers a new opportunity to take advantage of the growing demand.
In 2018, the burgeoning build-to-rent market, comprising purpose-built blocks of rental homes, attracted £2.4bn in investment and is forecast to grow by a further 180% over the next six years.
The attraction for large pension and insurance funds, is clear. They have the capital to develop large blocks of flats, which are let out and managed long term by a single company rather than being sold to individual landlords. This provides institutional investors with a fairly stable, long-term income stream. Tenants are typically offered longer tenancies than for standard rental accommodation, with contracts of up to three years or more, and other amenities, such as gyms, communal lounges and cinema rooms.
However, the growing number of developments also means the market is increasingly competitive with those wanting to live in the developments calling the shots. Residents typically want great locations, plenty of space, and good value rent. They also want a variety of additional onsite services such as gyms or other communal facilities. Increasingly residents are also showing preference for properties with the fastest connectivity and smart living solutions. With demand for bandwidth increasing, having an ultrafast internet service available helps a BTR development to stand out in the market.
Savvy operators and investors are making the investment in full fibre technology during their build. They know that it will increase their development's desirability which in turn means they can attract and retain residents more easily than a rival development with slow broadband.
Optify specialise in the design and installation of full fibre networks in BTR developments to deliver the fastest speeds both today and into the future. You can find out more here.