Build to Rent: Is it worth it?

Build to Rent are new build developments designed specifically for renting. They come with longer tenancies, a dedicated on-site manager and purpose built communal spaces, as well as a premium price tag. Here's everything you need to know about Build-to-Rent.

Angela Kerr Director, Editor

Renting privately comes with a whole range of issues for many people: complaints of damp properties which landlords refuse to repair, dealing with extortionate rents and the precariousness of short leases. But is Built to Rent the answer? We look at the pros and cons

What is Build to Rent?

Build to Rent describes new build apartment developments that have been built by developers specifically to rent out, rather than sell. This approach addresses many of the problems that renters face when renting privately, such as problems associated with short-term leases.

But they are also designed to offer:

• Good quality homes, mainly in larger towns and cities and often located near good public transport links.
• Residents will typically have access to communal facilities like gyms.
• Developments typically have on-site staff.

How many Build to Rent homes are there?

Build to Rent was introduced in 2012. One famous example is the London Olympics athletes’ accommodation in Stratford, east London, that was turned into rental accommodation. Other large developments followed and the Build-to-Rent scheme has grown in popularity.

In 2023, according to the British Property Federation, there are 251,208 Build to Rent homes in the UK, of which 78,717 are complete, with 72,244 new Build to Rent properties under construction and 113,379 in planning stages.

Given that there are an estimated five million rental properties in the UK, Build to Rent represents a small percentage, but it is growing. In fact, John Lewis is pledged to build and rent out 10,000 homes in coming years.

How many Build to Rent London properties are there?

There are around 96,000 London Build to Rent homes, while outside London, there are around 155,000. Build to Rent Manchester properties are available as well as in Birmingham, Liverpool and many other towns and cities.

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How are Build to Rent developments different?

Developers are designing their Build-to-Rent properties to suit the lifestyles of the people they expect will want to live there. So as well as offering good quality accommodation, they are also trying to create Build to Rent communities within the developments by including features like communal areas, gyms and games rooms. Some have their own concierge service.

3 Benefits of Built to Rent

Many renters have encountered issues with private renting. Common problems include:

• Short-term leases
• Complaints that rents have unfairly increased
• Landlords being slow to carry out essential repairs

By comparison, the benefits of renting a new build through the Build to Rent scheme are:

1. Tenancy options of over three years

With Build to Rent, developers should usually offer longer tenancy agreements of 3 years or more to all new tenants who want one. These are also known as ‘family friendly tenancies’ because they offer longer-term security and stability for people wanting to settle down within a community.

However, there isn’t an obligation for the renter to take up a 3 year tenancy. If they want a tenancy of 6 months, 1 year or 2 years, companies should offer these.

Although there may be periods when the offer of longer tenancies would interfere with planned refurbishment works. In this case, it would be permissible to offer shorter tenancies, running up to the date of the refurbishments.

2. Easier to address problems

The big benefit is having one landlord responsible for managing and operating the whole development. This should make it easier for tenants to get in touch with the landlord and get problems resolved quickly.

Another benefit is the landlord must have a complaints procedure in place and be a member of a recognised ombudsman scheme. This means if things do go wrong tenants should have a clear way to complain and get issues addressed.

3. The rent is clearly laid out including any basis for increase

Where the rent or service charges are to be reviewed during the period of the tenancy, the basis for the review and for calculating the increase (whether as a fixed percentage or index linked to inflation) should be clearly set out in the tenancy agreement.

So what are the disadvantages of Build to Rent?

So, are there any disadvantages to Build to Rent? Yes. Firstly, while more Build to Rent homes are being built, they are still only a small proportion of private rental properties. Secondly, you may not qualify to live in the existing Build to Rent developments. That’s because many of the ones that are already built are targeted at specific demographics such as over 55s or young professionals or people with pets.

Finally, and most significantly, living in a Build to Rent property isn’t cheap….

Is Build to Rent affordable?

All the benefits of Build to Rent homes don’t come cheap. With many offering communal workspaces, laundry services, concierge, event spaces and gyms it isn’t surprising they can come at a premium. When you rent a new build flat with these extra facilities and services, it means the average rent on these developments is typically higher than comparable properties on the private rental market.

But while you may be able to afford the rent now, bear in mind that paying a premium for your rent is going to make it even harder to save if you are hoping to one day buy your first home. If you are looking at rental but one day want to afford to buy, take a look at our saving for a deposit guide. Other government schemes (Rent to Buy and Shared Ownership  for example) may also enable you to get on the property ladder while renting. And check out the numerous other alternatives to the government’s now defunct Help to Buy scheme.

Do developers need to provide affordable housing?

Yes. The Government’s guidelines say 20% is a ‘suitable benchmark’ for the level of affordable private rent homes to be provided. Although this can be challenged by local authorities should they wish to set a different proportion.

So what is affordable housing when it comes to Build to Rent? The Government says national affordable housing policy requires a minimum discount of 20% for affordable private rent homes compared to local market rents.

Am I eligible for affordable Built to Rent?

Eligibility should be agreed locally between the local authority and the Build to Rent scheme operator, but taking into account criteria set out in planning guidance. So contact the developer for more information on this.

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Will Build to Rent make things better for renters?

Our research suggests the benefits if you rent a new build through this scheme could be significant. Some 40% of respondents to our recent YouGov study said they would appreciate renting directly from a responsible company or housing provider rather than a private landlord or lettings agent.

Over a third said renting a high-quality home would significantly improve their rental experience.

Build to Rent developers

There are a number of Build to Rent developers, some of which include:

• Simple Life Homes
• Quintain Living
• Allsop Letting and Management

• Essential Living
• Dandara Living
• Moda Living
• Legal & General, urbanbubble
• Touchstone
• Way of Life
• Get Living

HomeViews.com reviews and rates properties built by Build to Rent developers. It’s a great place to look to see what existing residents think of their place. They have named their top 5 Build-to-Rent developments with The Trilogy in Manchester coming in at number one, by Allsop Letting and Management. The Keel, in Liverpool, also by Allsop Letting and Management comes second, while The Whitmore Collection in Birmingham by Legal & General, urbanbubble comes third.

Meanwhile, fourth place goes to Allsop Letting and Management’s Vox in Manchester, and in fifth place was The Quarters Kilburn in London, by Bravo.

How do I find Build to Rent properties

When you’re renting in the private market, you’ll often start by searching on property portals like Rightmove. But it’s not that simple if you’re trying to find Build to Rent properties. When we tried to look for Build to Rent properties on Rightmove, it was difficult to know if any were on there as we couldn’t filter by that type of property.

So if you want to find Build to Rent properties, check out www.lovetorent.co.uk which lists developments and allows you to search for those available in your area.

It’s also advisable to check developers’ websites to see if they have anything in your local area.

And if you’re considering a rental property in a new development, you can use HomeViews.com to see verified reviews and ratings by current and former residents.

Living in a Build-to-Rent property? Let us know what you think in the comments box below!

Frequently Asked Questions