It’s impossible to overlook the Built-to-Rent (BTR) sector in the UK property market. In recent years, this market has experienced significant expansion, propelled by a combination of limited supply in the sales market and shifting consumer preferences.
As demand in the ‘built to sell’ market wobbles due to uncertainty surrounding house prices, BuildSafe has noticed an uptick in BTR sector needs. In response to this growing market, we at BuildSafe are there to provide the correct warranties for Private Rental Schemes (PRS) and commercial projects.
Growing Demand
According to research by sector analysts, Glenigan, over £5 billion was invested in the BTR sector in the year leading up to last September, marking a significant upward trajectory. In the third quarter alone, funds flowing into the sector were up 75 per cent on the same period the previous year.
This investment surge reflects the BTR sector’s robustness, making it an attractive opportunity for developers and investors alike. Glenigan’s forecast further predicts this upward trend will continue, providing ample opportunities for the industry to meet rising demand.
Several factors are stimulating growth here. There’s a marked shift away from traditional urban centres, with tenants and investors showing an increased interest in suburban living. New lifestyle and work trends influence this shift, with a growing preference for hybrid working models.
Developers are responding to these changes by creating BTR schemes that appeal to a broader demographic, including families seeking suburban homes with community infrastructure.
The pandemic has significantly influenced our home priorities, increasing emphasis on well-being, access to outdoor space, and the ability to work from home. Unstable job markets and rising house prices are encouraging more people to rent, favouring BTR schemes that offer a vibrant community lifestyle and access to amenities at a lower cost.
These changing trends drive demand for high-quality rental accommodation, thus stimulating growth in the BTR market.
Sustainability and Changing Trends
In light of the UK government’s commitment to reach net zero by 2050, BTR developments are becoming more sustainable. The forthcoming ‘Future Homes Standard’ demands that all new homes meet world-leading energy efficiency expectations.
Proactively adopting sustainable building strategies, such as off-site manufacturing of units and implementing modern cooling systems, ensures future-proofed assets. This focus on sustainability, combined with residents’ increased willingness to pay a premium for sustainable living, further fuels the growth of the BTR sector.
For any BTR development, large or small, BuildSafe offers a range of warranties to protect your investment.
Structural warranties, such as our New Home Warranty and Commercial Property Warranty, offer protection against structural damage that might occur during the construction and post-construction phases. For those undertaking conversions, our Completed House Warranty ensures coverage for your project.
Building warranty insurance is crucial to protect against unforeseen circumstances, ensuring peace of mind for both developers and tenants. Insurance can help to cover the cost of rectifying structural defects, and it’s often a requirement for securing finance.
In a sector like BTR where substantial investments are made, lenders need to be assured that their investment is safe. The insurance demonstrates that the development project is backed by a comprehensive safety net. This can make the process of securing finance smoother and more straightforward, enhancing the project’s overall viability.
For tenants, the presence of building warranty insurance reinforces their confidence in the quality and longevity of their potential home. It indicates that the building has been constructed to a high standard and that any significant structural defects will be rectified without undue hassle or cost.
This insurance thus enhances the appeal and credibility of a BTR development, contributing to the overall success of your project.
Building Warranty Insurance Offers Protection
Whether you are a small developer embarking on a conversion project or a larger commercial developer planning a multi-unit scheme, BuildSafe has a solution tailored to your needs. Our team can provide expert bespoke advice and comprehensive cover for any BTR project, ensuring you meet industry standards while protecting your investment.
With our tailored warranties, industry expertise, and commitment to sustainability, BuildSafe is dedicated to ensuring the success and longevity of BTR projects across the country.
Giles Fallan, CEO at BuildSafe, comments: “The BTR sector is on an undeniable growth path, driven by changing lifestyle trends, rising demand for quality rental accommodation, and the UK’s commitment to sustainability.
“This sector presents a significant opportunity for developers and investors to meet the evolving needs of tenants and contribute to the housing landscape.
“As BTR continues to flourish, BuildSafe is fully dedicated to supporting these stakeholders by offering a wide range of tailored warranties.”
Chat with BuildSafe today for a bespoke structural warranty plan that protects your valuable investment.