The Evolution of Build to Rent: A New Era

Over the past decade, the Build to Rent (BtR) sector has transformed the UK rental market, delivering 100,000 homes and attracting £35 billion in investment. BtR developments have diversified to meet varying needs, offering high-quality amenities and well-managed properties that often include gyms, communal lounges, and concierge services.

Rise of Generation 2 BtR

As renter expectations grow, a new wave of BtR developments, dubbed 'Generation 2' (Gen2), is setting higher standards. These projects feature larger schemes, typically averaging 340 apartments, compared to the 187 found in earlier Gen1 developments. Gen2 developments provide an enhanced living experience with amenities like rooftop running tracks, pet spas, and keyless entry systems. Apache Capital’s Angel Gardens in Manchester, a pioneer in Gen2, introduced innovative offerings like a rooftop football pitch and resident event schedules, setting a benchmark for future developments.

Shifting Priorities

Today’s renters prioritize convenience, leading to a focus on superior management and resident experience. This shift has driven innovation in BtR, with investors recognizing the demand for professionally managed rental homes. Strong investor confidence in markets like London, Manchester, Birmingham, and Leeds is reflected in robust lease-up rates and high occupancy levels, showing a clear preference for well-managed, amenity-rich properties.

Looking Ahead

The past decade has seen BtR developments across various locations and price points, with an increasing number of active investors. As the sector continues to evolve, Gen2 developments are expected to push boundaries, catering to the needs of modern UK renters and sustaining the growth of this dynamic market.