New Opportunities in Buy-To-Rent and Built-To-Rent in the UK

Build To Rent UK

In the UK, leasing is expensive as compared to buying a home. The Hometrack reports find the average term of rents in the UK is 4.3 years. However, leasing grew in the past few years, and purchasing declined as the number of private leaseholders increased in all sectors by 24 per cent between 2006 to 2016. 

The costs grew 19 per cent from 2007 to 2017, even though the average cost declined to £458 from £463 (according to ONS) during this time. In the last decade, rentals in London grew by 29 per cent, whereas the average rents in the city were up to £1,590 every month in 2017. Rents dropped in certain areas of London, for example, North East where the rents fell 3 per cent in the previous decade. 

Developers are building homes close to city areas offering multiple job opportunities and having offices nearby. In addition, some investors are acquiring houses that offer convertible office areas and residential space. Different developers are likewise building homes for urban communities of the UK. 

Numerous insurance agencies and banks are purchasing office spaces in Liverpool, Manchester, and Birmingham. A similar trend can be found in many other parts of Europe, like Switzerland and the Netherlands. 

Work To Lease Venture 

Architects are working on similar new ideas for building family homes. The offices with residential sections are a new concept, which young workers have supported. A portion of these innovation-based arrangements helps the buyer meet new lifestyle needs.

One of the problems with such arrangements is that workers need to confirm their migration status to lease a home; if offices are converted to residential units, they cannot be leased as commercial units. 

The transformation in rental rules can make it difficult for mortgage holders to lease their homes.

Joblessness is a common problem in the current financial circumstances, even though it is most consolidated in London, where the occupants pay up to 50 per cent of their earnings towards rent.

Since income dropped in the last ten years in England and Wales, and rents have increased, paying higher rents is a problem. Hence, new investors seek opportunities in alternative options or other low-cost markets to get a home of their choice.

To know more about opportunities in renting – buy-to-let / build-to-rent, renting new homes, searching for a tenant, or student buy-to-let, click Hamilton International Estates (www.hamiltoninternationalestates.com).