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The Rise of Build to Rent


Build to rent is not a new concept, but it is becoming increasingly popular with corporate investors. The UK rental market has never been more buoyant. There are too many tenants and not enough available (or affordable) properties, so in places like London, it is extremely difficult for young professionals to find anywhere to live. As a result, a growing number of tenants are renting homes from a different type of landlord.

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Corporate Landlords Landlords within the build to rent sector are not your traditional landlord. Rather they are usually joint ventures that include large financial institutions and pension funds.

A New UK Trend The corporate rental sector is common in other countries, but it is still fairly new in the UK. Yet it works very well. Tenants, particularly young professionals, enjoy living in larger developments where accommodation is brand new and there are plenty of on-site facilities.

One such development, the East Village in Stratford, east London, is a typical example of a build to let housing development. The site has no communal space, but it does encourage community activities. The developers have a strict policy of only allowing independent bars and restaurants to set up on the site, with the exception of a small branch of Sainsbury’s. It is very much a young community, but as well as a studio and one-bed flats, there are also family-sized four-bed homes.

Build to rent homes are styled to suit the location, so premium developments will have on-site gyms, libraries and full-time staff to organise tenant activities.

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