Build to rent is booming in the UK with nearly £420m invested into the UK market during Q3 2021. The South West is one of the regions that is seeing serious rental growth.
In Savills’ Q3 UK Build-To-Rent Market Update 2021, Bristol’s rental growth since March 2020 came second only to Sheffield, with a 7 per cent rise. Its three-month rental growth forecast is roughly in line with Leeds and Glasgow at 2.9 per cent and ahead of Liverpool and Manchester.
The rental growth documented in the report indicates the opportunity for BTR developers in the South West. Katie Stamper, Partnerships Manager at Wise Living, who looks after developer partnerships and opportunities for the BTR provider in the South West, believes there is an undersupply of good quality single-family homes to rent in the region.
Katie said: “The BTR market continues to soar across the UK and there is a real growth opportunity in the South West. Right now, we are seeing an increasing number of BTR flats being built in central locations such as Bristol and Exeter. These generally cater to young professionals and students who are attracted to high rise living and city-centre locations.
“Conversely, there is a real undersupply in the region of single-family homes to rent in suburban areas and towns. We know that the pandemic has increased people’s ability to work remotely, and as such, many people have reevaluated the way they want to live. Our own research of 1,000 renters in the UK showed that 45 per cent now prioritise living near green spaces, We have also seen a rise in demand for the smaller cities, with the Savills Q3 BTR update finding that many London relocators are moving to areas like Bristol which are less densely populated and more affordable.
“So that really shows the opportunity. At the moment anyone searching for new-build family homes to rent in Bristol and other popular South West locations will find they are facing stiff competition.”
Wise Living currently has 10 active BTR developments in the UK, including in Coventry, Wolverhampton, Boston, Nottingham, Rotherham and Telford. It specialises in working with developer partners including Strata, Lovell, Seagate Homes and Keon Homes to bring BTR developments to suburban locations of cities and large towns where there is a clear undersupply of quality rental homes.
Katie says that’s why the BTR provider is stepping up to the challenge of providing BTR homes in the South West: “We have a strong track record of success and have developed some fantastic schemes with our housebuilder partners in the Midlands and the North. We’re now bringing our model down to the South West where we have plans to develop hundreds of quality rental homes to meet demand across the region.
“We have seen a growing interest from housebuilders and developers to tap into the BTR market to increase their revenue and de-risk sites. We are looking forward to working with partners in the South West to meet our ambitious targets and provide quality homes for rent in the region.
