Today I have been talking about the rental market at this year?s sold out National Residential Investment Conference, held each year in London.
Among other topics in the spotlight during the course of the day, was JLL?s recent research on the institutional (non-Housing Association) sector. Here are some key facts and figures. Having analysed seven residential developments comprising 911 units with an average scheme size of 130 homes, JLL reveals that average gross to net is 26.6% with an average rent premium of 9% for high quality build-to-rent developments and 3% rental growth.
The average tenant age across these schemes was 31 years old, achieving circa 30% more than the mean UK salary. Tenants were prepared to pay to be in a BTR or multi -family scheme and were not over extending themselves with rent to income at 28%, compared to the UK over-burdened rate of 40%.
JLL also identified these net initial yields:
Author : Mary-Anne Bowring
(Weekly, fortnightly or monthly)