Building Property to Rent
In recent years, there has been significant growth in the build to rent sector, which reports suggest will see heavy investment over the coming months and years, as the demand for privately rented properties hits an all-time high. So, what exactly is the build to rent phenomenon? Could it possibly be a threat to private landlords in the UK?
What Does Building Property to Rent Mean?
We’ve seen for a while now that the home-ownership rates have been falling and people are finding it much more difficult to secure a mortgage, and indeed save for a decent deposit to buy a home. Alongside this, factors such as population growth, changes in the economic landscape, and a shift in people’s perception of the rental market have all contributed to the recent demand for more privately rented housing.
While this has been a good thing for landlords, we’ve also seen some major changes in legislation, as it has been brought in to protect tenants, but has left a lot of landlords wondering what the future holds for their property. As there are some big players who have caught on to this, making build to rent an attractive option.
What are the Options for Private Landlords?
It’s been estimated that a massive £75 billion will be invested in the professionally managed private rented sector in the UK by 2025. That’s due to the growing demand for property across the country. It’s a big number, and it’s even bigger if you consider that right now, there are huge numbers of individual landlords exiting the property market.
Lettings and renting are an increasingly difficult industry to be in, and it’s tough for landlords.
There are landlords out there who are struggling, who can’t keep up with the changes in legislation, and are taking a huge hit in income after the introduction of the Tenant Fee Ban. But there are those who are fighting through it, and despite everything, are determined to maintain growth and make things better for the property industry.
Investing in Property
It might be that you’re in a position where you’ve either grown a successful portfolio or are looking to expand your growth in other directions. Or perhaps, you might see the benefit of selling up and putting your money into something which gets you a guaranteed return for little effort.
There are benefits to investing in build to rent if you’ve got the funds to do so. Perhaps you are one of the landlords, who are seriously thinking about exiting the market in this difficult new landscape. In which case, placing your cash in something like build to rent could be a viable option.
Contact Us For Properties To Rent
If you’re looking for support and advice in lettings for properties, then please get in touch with our property experts at Hadleigh Estate Agents.
Call our lettings team on 0121 426 3220 or you can send us an email here.