New homes are being built especially for renters, as reports estimate that nearly a quarter of households are expected to be renting by 2021. The build-to-rent sector is worth an estimated £25 billion, according to Knight Frank, and is expected to rise to £70 billion within the next five years as renters continue to be priced out of the housing market. London accounts for half of the 60,000 build-to-rent homes under construction or in the pipeline across Britain, but this serves only a fraction of the expected demand from two million renters in the capital. The boom in the capital's build-to-rent sector is resulting in thousands of boutique new homes becoming available. Good transport links for an easy commute is said to be the top priority for Londoners looking for rental accommodation, even more so than staying within budget. Prices at the developments we've spoken to start from about £250 per week, but can swiftly rise depending on location and level of services offered, which can include fully furnished flats with free wi-fi, 24-hour concierge and hotel-style reception. The rise of build-to-rentThe letting market is dominated by buy-to-let investors, with at least three quarters of tenants living in homes managed by private landlords. However, this could all be set to change as build-to-rent developments owned by large-scale corporate landlords are on the rise. Build-to-rent is said to offer more variety of homes for renters to choose from and, possibly, more security because tenancy contracts of up to three years are on offer. Essential Living’s first build-to-rent development, Vantage Point in Islington is set above Archway Tube station and opened in September 2016. Residents have access to a duplex lounge and dining space. Such developments will also offer benefits including communal living spaces, gyms, pools and car-sharing facilities, as well as fully furnished accommodation. The Knight Frank report reveals that in London more than half of renters are spending more than 40 per cent of their incomes on rent, rising to 62 per cent across the UK. However, the reason for the soaring number of renters is highlighted by separate research from Hamptons International which suggests that it would take more than 18 years for a typical single Londoner to save a 15 per cent deposit to buy a home. Even a couple saving together would take more than 11 years.
The UK's build-to-rent boom has led to an increase in boutique accommodation that includes communal living spaces, gyms, pools and car-sharing facilities, according to a report by estate agent Knight Frank. It revealed half the 60,000 buy-to-rent properties in the pipeline are in London, with demand in the capital expected to reach two million people. In addition, the study found more than half of renters in the capital are spending at least 40% of their income on rent. The build-to-rent sector is worth about £25bn, a figure that is expected to rise to £first over the next five years.