Build-to-Rent or Rent-to-Live?

With the news this week of Puma’s £50m investment in McGoff’s Downtown Victoria North and Packaged Living’s plans for Old Hall Place in Liverpool the Build-to-Rent (BtR) sector continues to make inroads into the North West’s housing market. But with data for Q1 2023 showing a slowdown in growth nationally compared to the long-term average, does more need to be done to change the image of a sector often misunderstood by politicians?

Analysis by Savills for the British Property Federation pointed to growth of 12% for the regional BtR market between Q1 2022 and Q1 2023. While the data does hint at a slowdown in the number of starts on site, the planning pipeline is much stronger in the regions compared to last year – growing by 11%.

And with nearly half of all UK local authorities (186) now including BtR in their planning pipelines, the ongoing housing shortfall and the squeeze on mortgage affordability, the future looks bright for a sector of the housing market that isn’t always understood.

Lifestyle Changes

The rise in demand for BtR can also be explained by changes in the lifestyle choices of young professionals looking to live in the North’s vibrant city centres. It provides top-quality apartments in highly accessible locations without the burden of having to worry about maintenance costs.

When combined with hotel-level amenities like concierge services, resident lounges, gyms, private dining facilities, work and study spaces, it’s not hard to see the attraction.

But for politicians used to more traditional housing tenures, it can sometimes be a challenge for them to recognise how changing demographics in northern towns and cities mean that BtR is now an attractive long-term option for young couples and families.

Single-Family Rental

The emergence of Single-Family Rental in 2023 should change perceptions of the BtR sector.

Operators like  PlaceFirst are redefining what family housing looks like in towns, including Morecambe, Accrington, Hartlepool and Bolton. Taking the BtR model out of high-rise city centre apartments and creating aspirational neighbourhoods for families to call home.

As BtR moves from the city centre to the suburbs and beyond, there is the potential to change the image of the sector from one perceived as a product solely for young professionals to a sector whose time has come and offers a genuinely long-term alternative to homeownership for all.

Rent-to-Live

Perhaps the starting point for changing the image of the sector is to move away from Build-to-Rent as a descriptor for this nascent sector of the housing market.

‘Rent-to-Live’ is a more accurate description of what the sector has to offer: longer tenancies, better quality, more amenities and fewer responsibilities.

As somebody about to renew my mortgage this year, I could get on board with that.

Cavendish is the UK’s Number 1 Public Affairs Consultancy. We are currently polling MPs on their perceptions of the BTR – if you’re interested in receiving our report please email kevin.whitmore@cavendishconsulting.com