As part of this, it intends to examine whether the BTR name resonates with the general public and, if not, to consider whether it needs to change. In my opinion, it doesn’t – and this is why.
In spite of the challenges that 2020 presented, the UK BTR sector has remained buoyant. In fact, it continues to attract more investment, rental interest and backing by local councils, so much so that Q3 of 2020 was the strongest single quarter of BTR activity on record with £1.84 billion invested, according to the British Property Federation (BPF). It is hard to understand why a market performing so well - even under such difficult conditions – needs to change its name.
It is worth recognising that the purpose of the BTR name has never been to resonate with renters, nor is it on the renter’s list of priorities when choosing their next home. More so than ever, renters are focused on finding the best home for them and their needs, and that much, I believe, will never change.
Demand in living well
The property market has changed significantly in the last 12-months, and the continued restrictions in place from the Government in an effort to curb the spread of Covid-19, have had a great impact on where consumers want to live.
Living well has become a main priority for many householders, with millions still working from home and juggling the demands of family life under one roof. National lockdowns and restricted activity outside of the home have made many renters realise that the size and location of their homes no longer fit their requirements.
This realisation has had a domino effect in the property industry, in particular with the demand for housing in cities and towns. The number of renters looking for a home in these areas has dramatically shrunk in favour of suburban living – in fact, the volume of people moving out of London at the close of 2020 had reached a four-year high and average rents across the board – in some of the UK’s biggest cities – dropped, reflecting the change in renter attitudes. Some are referring to this as a ‘population shock’.
The importance of the home and its effect on renters’ wellbeing has been thrown into the spotlight, and the pandemic has opened up discussion on this topic. This realisation has allowed renters the opportunity to choose freely where they want to live, for the benefit of their own and their family’s lifestyle.
Back to basics
Property professionals now face a challenge to continue to supply the right product, in the right place, at the right price.
While the sector is still in its relative infancy, its early success – bringing well-managed homes and communities to towns that require regeneration – has helped to enhance the overall standard of rental housing in the UK. Renters care about quality, so much so, that during the first lockdown all of our properties in the first and second phase of our Old Brewery development in Mansfield, Nottinghamshire, were reserved online in just a couple of months.
Remote working has allowed renters the freedom to choose, to put a quality home ahead of commuting distance. And I think that this ‘new-found freedom’ has helped to uphold the popularity of BTR during the pandemic.
Taking it back to basics, the popularity of BTR will only remind property professionals of the old adage - a property will always ‘market’ itself, and a quality home that meets current demand will attract a tenant.
Attracting more investment
As I noted above, the BTR sector is only a few years old. In spite of that, however, confidence in it continues to rise with the support from investors and local governments growing. Examining our own portfolio, Wise Living has the backing of a £33million investment from ICG Longbow and a £100million investment from Triple Point.
Although demand is projected to continue into 2021, the question remains about how we – as property experts – ensure that interest from investors remains.
With this in mind, I’m delighted to see that the committee also intends to work on ‘normalising’ data sharing with regards to annual BTR funding, investment into regeneration, job creation and housing supply, as well as best practice with regards to sustainability and promoting a green agenda. As an industry, we must continue to attract investment for BTR developments, so that we can meet that predicted demand. Transparency is always welcome, and I have no doubt that this will encourage policymakers to get involved and companies to invest further.
It is evident that popularity in the market has sprung from the call for and creation of good quality and well-managed homes. These factors have become a must-have for all renters, and I expect they will remain high on renters’ lists into 2021. I don’t believe a change in name will have any impact on the market’s appeal – today, it’s all about quality.
