The BTR Market grows

The British Property Federation (BPF) has recently conducted a survey on the build-to-rent sector. The results are interesting to say the least. In the UK, Build to Rent relates to housing units purposely built and designed for rent. This is in terms of design, lifestyle product offering and operational efficiency.

To the house builders, UK Build to Rent is a growing asset class that requires partnering up with an operator. This is to take a development from completion to becoming a stable asset. To the institutions, UK Build to Rent is unlike retail or office where investors invariably have to wait 5 years for a rent review. Income is linked to wage price and retail inflation. The sector also corrects an imbalance because tenants' needs are changing, but the traditional rental stock has not been.

The changing needs of modern tenants include specifically designed to work-from-home areas, apps and digital channels with which to communicate with their landlord, social living, convenience such as post lockers, gyms, cinemas, clubrooms and cafes within the buildings. BTR developments must include excellent amenities, and easy access to vital services built in thriving locations. The build-to-rent investment market offers excellent potential gains, income growth and high occupancy levels.

However, as we at Ringley know only too well, having designed its own proprietary tech with AI and machine learning include, it is an NOI 'net operating income' business, where without an operator competent in not only lease-up and resident engagement, compliance, internal audit and income generation, total returns will be less than what they should be.

Positive Developments in the Sector

The pipeline of build-to-rent homes indicates that an impressive increase in numbers will be delivered over the next decade. A long-term prediction for Build-To-Rent homes foresees that around 380,000 BTR homes will be completed over the next ten years. Build-to-Rent properties are offered with multiple amenities. These include on-site gymnasiums, opportunities for social activities and concierge services. Besides creating more rental housing options, these developments help to create a social living environment.

Ringley is a tech-enabled residential real estate-focused company that has a Client mindset and partners with investors looking to enter the UK living sector or to enhance the value of their assets. Headquartered in London with offices in Manchester and Cardiff with ~120 staff, Ringley’s UK-wide portfolio comprises over 13,000 homes of mixed tenures. Drawing from decades of residential real estate experience, the business offers investors the same hassle-free approach BTR operators offer to consumers; by acting as a one-stop shop partner to those owning residential and living sector assets. Ringley’s partners include Curlew, Europa Capital, Gresham House, Rise, and PATRIZIA.

Ringley’s whole asset lifecycle expertise enables the business to see how design, technology, management, and operations can drive total returns and the long-term performance of investments from design, through project monitoring to stabilised assets, and, in preparing assets for exit. As consumer choice pushes through to the capital markets ‘green loans and bonds’ rent and yields well-conceived stock that boasts high ESG credentials will demand price premia and distinguish performing assets to drive total returns. We look for opportunities and use tech to unlock additional value and consider ESG from the very outset by taking a fully integrated whole lifecycle approach.

The company specialises in devising and implementing vertically integrated tech-enabled operational strategies that are underpinned by proactive management of the asset, the facilities and leasing.