Build-to-Rent market set to fly in 2020
There are now more completed Build-to-Rent homes across the UK’s regions than in London Political uncertainty spread its tendrils through most industry sectors in 2019, including the seemingly unstoppable Build-to-Rent market. The last 12 months saw a 22% drop in investment, according to research from CBRE. The consultant reports that transactions for the second half of 2019 were subdued compared to the last two quarters of 2018.
CBRE puts this down to market uncertainty around the General Election but there is no doubt that the markets have picked up since then. Looking to the year ahead James Hinde, the director of valuation and advisory services at CBRE is optimistic. He says the outlook for 2020 is “favourable” with some £1.5 billion worth of deals currently under offer. Hinde forecasts “rapid expansion” and CBRE’s forecast is for residential investment to rise by approximately 30% this year, with demand driven by “an increasingly diverse investor base from both domestic and overseas institutions.” This chimes with Savills analysis for the British Property Federation (BPF) which we reported in yesterday’s blog.
There are now 152,071 B2R homes at various stages of completion in the UK. Of these, 40,181 of these are complete, with a further 35,415 under construction and 75,475 in planning. This represents an increase of 15% over last year. LifebyRingley, our lettings business based in Manchester, continues to thrive, growing its management portfolio of BTR homes and witnessing rapid growth in the sector. This is borne out by the 51% surge in the number of completed rental homes in key regional cities reported by Savills, with Manchester, Birmingham, Liverpool, Leeds, Glasgow and Sheffield leading the way. There are now more completed Build-to-Rent homes across the UK’s regions than in London, although the capital still has more homes under development.
Planetrent Properties
Under Offer: This term applies to a property where the landlord is considering an offer but remains on the market. It implies that further offers may still be considered until the landlord formally accepts or declines the current offer.
Let Agreed: This term indicates that a landlord has provisionally agreed to enter into a rental agreement with a prospective tenant, pending additional checks and referencing. It doesn't require the prospective tenant to have paid a holding deposit.
Let: This term signifies an established binding rental agreement between the landlord and tenant.
For both lettings and sales, the guidance addresses additional terms:
New On The Market: This term is used for a property not advertised since its last sale or rental. It should only be used for a brief period.
New Instruction: It applies to a property assigned to an agent for marketing recently, even if it was previously listed with another agent without being sold or rented.
New and Exclusive: This term refers to a property that is either new on the market or a new instruction, exclusively available through a specific agent or portal.
New Method of Sale/Let: This term is used when a property is being marketed for sale or rent using an alternative approach to the original advertisement, such as transitioning to an auction or sealed bid.
Reduced: This term indicates that a property's price has recently been reduced. The reduction should be genuine and comply with the Chartered Trading Standards Institute's guidelines on pricing practices.