It’s a family affair: the rise of single family rental homes
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- 23rd Apr 24
It’s a family affair: the rise of single family rental homes
When you think of Build to Rent, what comes to mind? Chances are that it’s a swanky apartment with hotel-style amenities. And while there are plenty of this type of property available, there is more to the story than just luxurious living for young professionals. Build to Rent represents a shift in the housing market towards long-term, purpose-built rental accommodation, with a huge opportunity with the amount of investment in the single family homes market.
The data reveal
According to a recent report by Knight Frank, the single family housing (SFH ) sector in the UK is rapidly gaining momentum. Investors spent a record £1.9 billion acquiring or funding more than 6,200 homes last year, up fivefold from £388 million in 2022. In total, single family housing investment accounted for just over 40% of all Build to Rent investment last year. The total size of the SFH market, combining both operational homes and pipeline, has nearly trebled since 2018 demonstrating the appetite from developers, investors and lenders for the sector. This means the choice for people wanting to rent a high quality house has never been better.
Suburbs calling
Investors have also turned their attention in greater number to the suburbs. There has been a drop in listings and a substantial reduction in the supply of homes to rent, partly due to people wanting to live in their homes for longer. In 2012, 19% of all private renters had lived at their current address for more than five years now that figure is 30%. Fueled by this demand, investors are building in the suburbs, creating communities, fostering sustainable living, and offering tenants a sense of belonging.
What do residents want?
According to research, residents opting to rent family homes have a series of must-have requirements. These include easy workplace connectivity, proximity to good schools and access to green space. A deep dive into what is on the Build to Rent market reveals that of 153 completed SFH schemes across the country, 75% of homes are located within 500m of public transport infrastructure and 80% are within 650m of a public green space. Given the high proportion of families who live in SFH, access to education is key. The analysis shows that 89% have a nursery within 1km, 97% have a primary school and 60% a secondary school. It seems that Build to Rent operators are not just listening to residents, they are delivering exactly what is required.
What are the benefits
Single family homes within the Build to Rent market boast unique benefits ideal for families and individuals seeking the comforts of homeownership without the long-term commitment. This allows people to enjoy the best of both worlds; the security and pride of a home of their own, combined with the flexibility and convenience of rental living.
Spacious living: often with larger floor plans compared to apartments, allowing for more spacious living areas, bedrooms, and storage options.
Smart interiors: high-quality finishes and amenities, such as stainless steel appliances, granite countertops, and smart home technology, elevates the overall living experience.
Community: although there is an emphasis on privacy, single family homes within Build to Rent foster a strong sense of community. Unlike standalone homes in suburban neighbourhoods, where interactions may be limited, Build to Rent developments often feature shared amenities and social spaces designed to encourage interaction and connection.
Facilities: residents can enjoy anything from fitness facilities to parks, playgrounds, and walking trails, all giving opportunities for customers to engage in recreational activities right on their doorstep.
Maintenance and management: professional property management and maintenance services takes away the hassle from living in a house. The home stays in excellent condition, allowing residents to enjoy hassle-free living without the burden of homeownership responsibilities. This peace of mind and convenience are particularly appealing to busy professionals, young families, and retirees who value their time and prioritise convenience.
What the experts say
Richard Berridge, CEO of UK Single-Family Association (UK SFA) says: “Build to Rent isn't just about luxury apartments; it's about redefining rental living to meet the diverse needs of today's market. Single family homes offer a compelling option for families and individuals seeking quality living without the ties of ownership. The surge in investment and development in this sector reflects a growing demand for spacious, well-equipped homes with a sense of community and convenience. As the CEO of UK SFA, I see this as a pivotal moment in the housing market, where Build to Rent is not just a trend but a solution, providing the best of both worlds for tenants across the UK."
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