By Travis Knipe, CEO, StarRez
During the final year in Higher Education, university students often start to prepare for their next phase of life – being a young professional in urban living dwellings. According to a survey conducted in the UK, in Q1 2019, 47% of the respondents said they would enter the private rented sector and only 6% were already property owners or were planning to buy.
The natural and most popular options open for that next step is either Co-living or Build to Rent. Co-living offers either a small unit or bedroom with shared facilities. It’s a good first step but not a long-term living option. Build to Rent refers to high-end properties with inhouse facilities provided by a management company.
However, Knight Frank’s multihousing survey in 2017 showed that 26% of graduates or young professionals (first time jobs) under 25 would consider paying premium rental for added perks such as communal areas with state of the art technology, and another 21% would pay more for onsite concierge. The Build to Rent sector is currently worth £25bn but could increase to £79bn by 2022 according to Knight Frank, the UK’s leading real estate consultancy.
With the number of new Build to Rent developments expanding year on year, the demand continues to increase. There have been some very exciting joint ventures announced across the UK in the past year, and the number of completed homes increased by 23% in 2020 despite the Covid-19 crisis. Historically, demand for rental accommodation increases after a recession to offer a more flexible way of meeting living requirements whilst keeping costs down. The UK government recognises that Build to Rent is an important factor in diversifying and improving housing supply.
Whilst the target audience for Build to Rent is fast expanding, the Homeowners Alliance 2019 Annual Homeowners Survey highlighted the benefits of Build to Rent – including longer tenancy, clear rental terms and one point of contact for on-site management. With all amenities included in the monthly rent, this could be a perfect option for students graduating, becoming young professionals and helping to manage their finances from the outset.
It can be very overwhelming making the move from student halls to a first apartment in a new city, especially if they have been isolating away from friends and family for the past year. With most Build to Rent complexes offering a range of onsite facilities, it provides the opportunity to be part of a readily made community.
Networking is a necessity across all business sectors in every major city and being part of a community already at home will ensure getting the all-important work life and home life balance right – which is crucial to residents’ wellbeing. Moda living understands that wellness relates to many different elements in our homes – including sight, comfort, safety, activity and becoming a pioneer in the Build to Rent sector. Through a partnership with hero, they are putting health and wellbeing at the heart of urban living and delivering a range of services from fitness and cooking classes to mental health first aiders onsite.
Moving from halls to a Build to Rent apartment is not only appealing to just students and young professionals anymore. More complexes are becoming family friendly and offering onsite facilities for new families and even retirees.
“Senior living is entering the minds of some Build to Rent players. Firms like Quintain and Delancey are producing data to show there is demand for Build to Rent homes from those in their sixties and seventies.”Arthur McCalmont, Senior Director, CBRE Residential Capital Markets
Build to Rent not only provides a smooth transition through those major steps from education into adulthood, but it goes beyond this to ensure you have the best urban living lifestyle suitable at every stage of life.