Build-to-Rent Sector Booms in 2024
Image credits: James Sullivan / Unsplash
The Build-to-Rent (BTR) sector is on fire in 2024! With record-breaking growth and sky-high resident satisfaction, this year is shaping up to be a game-changer. Rightmove’s acquisition of HomeViews has supercharged the sector, providing invaluable insights from over 44,000 resident reviews. Let’s dive into the key findings from Rightmove's 2024 BTR Report and see what the future holds.
Unprecedented Growth and Resident Satisfaction
2023 was a banner year for BTR, with the highest resident ratings ever. After a rocky 2022, the sector bounced back, showcasing its resilience. The fierce competition at the top has pushed operators to up their game, leading to exceptional resident experiences. The recent Resident Choice Awards highlighted the best of the best, proving that quality living spaces and top-notch management are the new norm.
HomeViews and Rightmove: A Dynamic Duo
Rightmove’s acquisition of HomeViews is a big win for BTR. This partnership means HomeViews content is now more visible on Rightmove, reaching a wider audience. With a database of over 44,000 resident reviews across 2,600 communities, the insights are pure gold for understanding resident preferences.
Diversification within the BTR Sector
The BTR sector is diversifying with sub-categories like Co-living and Single Family Housing (SFH) gaining traction. Here’s a quick rundown:
Pure BTR: City-centre rental apartment communities with a plethora of amenities.
Single Family Housing (SFH): Suburban new builds with professional management.
Co-living: Compact apartments with high-quality communal spaces.
Rental Operators: Professionally managed residential collections not originally designed for renting.
Key Trends in Resident Demographics and Preferences
Younger residents (18-34) are the primary demographic for BTR properties, valuing amenities like gyms and co-working spaces. Interestingly, the trend of moving out of cities has plateaued, with more people seeking suburban living for larger spaces and affordability.
Increasing Awareness and Demand for BTR
There’s still room to grow awareness of BTR. Rightmove’s data shows only 28% of consumers are aware of BTR, but once informed, they find it appealing. This presents a huge opportunity to educate prospective tenants about the benefits of BTR.
Enhanced Facilities and Management
Top-rated BTR communities offer amenities like gyms, lounges, and pet-friendly environments, enhancing the living experience and fostering community. Professional management is a key differentiator, with high management ratings leading to positive reviews and high occupancy rates.
A Bright Future for BTR
The BTR sector is set for continued growth in 2024. With increasing resident satisfaction, strategic partnerships, and a commitment to quality, the future looks bright. As awareness grows, more residents will be drawn to the benefits of BTR, ensuring its sustained success. For stakeholders, investors, and prospective tenants, the BTR market offers a dynamic and rewarding opportunity to be part of the future of housing in the UK.
