PRS REIT : BPF Who Lives In BTR Report feat. Simple Life Homes

Who lives in Build-to-Rent?

NOVEMBER 2021 - ENGLAND

An analysis of Build-to-Rent occupancy across England

Photo: The Trilogy Manchester, Allsop

16 NOVEMBER 2021

Contributors

Project Lead, Editor and Designer:

James Simondson, BPF

Analysis by:

Sandra Jones, Millie Todd, Anna Zaccaria, Dataloft

The British Property Federation (BPF), Dataloft, London First and the UK Apartment Association (UKAA) would like to thank our partners for this study:

We would also like to thank HomeViews for providing certified reviews of additional Build-to-Rent developments and Savills for their collaboration on the BPF/Savills Quarterly Build-to-Rent statistics.

1 Photo: Canada Gardens, Wembley Park, Quintain Living

Welcome

KEY FINDINGS LOCATED ON PAGE 4

The British Property Federation (BPF), Dataloft, London First and the UK Apartment Association (UKAA) are pleased to release our second publication of 'Who Lives in Build-to-Rent?'

Context: Build-to-Rent in the UK

Build-to-Rent is a fast-growing part of the UK housing sector and is increasingly contributing to overall housing supply. Together with Savills, the BPF prepares quarterly statistics on the Build-to-Rent pipeline for the UK. The latest quarterly statistics show that at the end of Q3 2021 the Build-to-Rent sector comprised 205,525 completed and planned homes, a 14% increase year-on-year.

63,950 42,032 99,543

This publication builds on our London-focussedpublication		completed	under construction	in planning
(our first publication, released in January 2021) in more ways				Source: Savills/BPF Build-to-Rent Statistics, Q3 2021
than one. Its scope is England-wide, looking at Build-to-Rent
homes and their residents across our major cities and towns.		Additional research undertaken by Savills and the BPF as part of the Q3 2021
Its sample size is much larger, constituting nearly 20 per cent of
	statistics looked at how Build-to-Rent is providing homes in the 20 cities identified by
total completed homes. Its dataset is wider, looking at different
			the UK Government for additional housing growth.
resident demographics in addition to those found in our first
publication. And, it explores the emergence of 'Suburban Build-to-	The vast majority of completed Build-to-Rent homes (81%) are located in the 20 cities where
Rent', - high quality, professionally managed homes for rent in outer-	the UK Government has increased housing targets by 35%, including London, Birmingham,
urban and peri-urban areas.		Liverpool, Bristol and Manchester. This underlines the critical role that high-quality homes
		built for renters will play in achieving national housing targets.
This publication demonstrates that Build-to-Rent residents are much			Table 1: Delivery of BTR homes - top 10 cities (3 years to Q2 2021)
more representative of the private rented sector than is often perceived			City	BTR (Complete)	New Home	BTR as % of New
- with similar affordability, incomes, professions and ages. We hope this					Completions	Home Completions
publication will build understanding of who Build-to-Rent is housing in			London	16,176	120,324	13%
the UK - and the supply gap that Build-to-Rent is helping to address in our
		Manchester	8,188	24,330	34%
housing market. It is of paramount importance that the UK seeks to address
the housing crisis by building a range of different properties and tenures			Liverpool	1,476	6,223	24%
to suit everyone's needs. Renting should be a positive experience and Build-			Birmingham	1,420	10,243	14%
to-Rent provides delivers exactly that, through a high-quality, professionally
		Leeds	1,237	11,476	11%
managed renting experience in new and vibrant communities across England.
		Sheffield	771	4,809	16%
Finally, we would like to give particular thanks to the Build-to-Rent providers who			Leicester	684	3,970	17%
generously gave their time and expertise to participate in this study. Exercises like			Newcastle	445	3,622	12%
this demonstrate the value of collaboration and data sharing - a move that will only
	Bristol	699	5,095	14%
make the sector better understood by others. This work builds a key foundation of
		Nottingham	552	2,986	18%
knowledge that the sector can draw on as it evolves.				2
				Source: Savills, British Property Federation, Molior, DLUHC

Graph 1: Profile of Properties in BTR sample

Graph 2: Regional Distribution of BTR sample

3	Photo: The Filaments, Salford, Grainger

Profile of our 2021

Build-to-Rent Data

The data in this publication covers over 20,000 residents, living in over 15,000 homes across 89 schemes in England. This represents nearly 20% of completed Build-to-Rent homes in the UK - the largest ever UK resident study for Build-to-Rent.

The data is split out into two samples. The 'BTR sample' constitutes the typical urban Build-to-Rent product seen across our cities and town centres. It is the subject of the majority of this publication and is benchmarked against data representing c40% of the whole rental market, provided by Dataloft. Dataloft's whole rental market data is a well distributed, balanced sample of all types of private rental stock and is

BTR SAMPLE	labelled 'PRS.'

49 12,404 15,887

Schemes Homes Residents

The Suburban Build-to-Rent (Suburban BTR) sample in the report is located on pages 12-14, taking additional data from Sigma Capital's Simple Life Homes. The Suburban BTR sample is benchmarked against the BTR sample to show how the two products are complementary to each other - providing a variety of renting options across England.

SUBURBAN BTR SAMPLE (PAGES 12-14)
40	Over 3,000	Over 5,000
Schemes	Homes	Residents

Disclaimer

The data presented throughout this report is the average for each category, and in some instances, due to rounding not everything will add up to 100%. Data was taken over a three-year period to July 2021.

Due to data collection and reporting differences between participants, some datasets do not constitute the full scheme, unit and resident totals outlined above but are instead a portion of the total sample size. For the purposes of this work, the number of residents are defined as those whose names are registered on the tenancy agreement and not the total number of residents living in the home.

Key Findings: Build-to- Rent in England

We compared our BTR sample to

PRS data and found that...

Income

Build-to-Rent residents' incomes are similar to the PRS - in our BTR sample, 32% of residents earn between £19-32k per year and in the PRS this income band constitutes 37%.

Affordability

Build-to-Rent has comparative levels of affordability to the PRS for all types of residents. Our BTR sample spends on average 29-33% of their income on rent across England.

Age

The most common age band for residents in both Build-to-Rent and the PRS is 25 to 34 years old (both over 40%). Our BTR sample houses similar numbers in each age band to the PRS although it has more 16-24 year olds (31%) than the PRS (24%).

Employment

Build-to-Rent residents are professionally diverse and employed in many different industries. Our BTR sample houses the same proportion of public sector workers as the PRS - 18%. This shows that Build-to-Rent is suitable for key workers.

Household Type

Build-to-Rent is home to a diverse range of households. Our BTR sample has more couples and sharers (58%) than the PRS (41%) and a comparable number of singles. Our Suburban BTR sample houses a large portion of families (43% of households) - much more than the 22% in the PRS.

Resident Experience

The most common amenities in our BTR sample included in the monthly rent are shared garden/roof terrace (78%), concierge (73%), social events (73%), parcel acceptance (69%) and co-working (61%) and lounge (61%) spaces. In addition, 73% of BTR schemes in our BTR sample allow pets in some or all homes.

Photo: Canada Gardens, Wembley Park, Quintain Living

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