Affordable Build to Rent homes
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- 05th Sep 24
The simple life
There’s a new kid on the block and this time it's all about simplicity. Amenity-lite Build to Rent developments are gaining popularity as investors and developers recognise the growing demand for more affordable, no-frills living spaces. These projects strip away the expense extras like gyms and rooftop gardens, focusing instead on providing high-quality, essential housing at a lower price point. As renters prioritise value and practicality, this minimalist approach is quickly becoming the new standard in the Build to Rent market.
Less is more
In the Cushman & Wakefield's Q2 2024 Build to Rent Update, research has shown that amenity-lite Build to Rent developments have become increasingly attractive to investors and the more affordable lower spec schemes have higher retention rates, while improving operational costs.
Particularly in urban areas, this type of development offers great living spaces at reasonable prices and without all the fancy extras, more people can opt for this type of home. Aiming to cater for a more cross section of customers, 53% of investors chose this type of Build to Rent as their first preference, with another 25% ranking it as their second choice.
Community is key
In the Build to Rent market, community is emerging as a cornerstone of customer satisfaction, often outweighing the appeal of high-end amenities like swimming pools or luxury gyms. Today's renters are increasingly seeking a sense of belonging and connection within their living spaces. They value communal gardens, shared spaces, and areas where they can meet and interact with neighbours. These elements create a strong sense of community, which enhances the living experience far more than costly, underutilised facilities. By focusing on creating environments that encourage social interaction, developers can meet the growing demand for community-driven living, which is proving to be more important to many customers than flashy, expensive amenities.
Lessons learned for the UK market
There’s a huge demand for more affordable housing options in the UK with Cushman & Wakefield research saying that 82% of renters earn £39,000 or less, with 24% falling within the £20,000-£29,000 income bracket. This data underscores the need for Build to Rent schemes that cater to the majority of renters, who need affordability over luxury amenities. By focusing on essential, amenity-lite developments, the UK market can better meet the needs of these renters, offering high-quality living spaces that fit within their budgets while ensuring long-term resident retention and stability.
Key components
Love to Rent is the go-to platform for showcasing homes tailored to a diverse range of customers, catering to various budgets and lifestyle preferences. Connecting with our customers and learning about their needs has led us to understand what they want from their Build to Rent home. We believe these are the features that today’s customers want and need from their living spaces:
Affordable Rent: Reasonably priced homes that align with their income.
Quality Living Spaces: Well-maintained, comfortable homes that offer value for money.
Community Feel: Opportunities to connect with neighbours through communal spaces like gardens or lounges.
Convenient Location: Proximity to work, public transportation, and essential services.
Flexibility: Flexible lease terms that cater to different lifestyles and life stages.
Security: Safe environments with reliable security measures in place.
Responsive Management: Quick and effective maintenance and support from property managers.