Reflecting on the last ten years of BTR

Ten years ago, London had just hosted the 2012 Olympic and Paralympic Games and in the afterglow, people were wondering what would happen next to the Athletes Village.

Would the village’s apartments be sold to homeowners? Would the village be left to fall into disrepair as other unsuccessful Olympic regeneration projects had around the world? Would it be used for something completely different?

In fact, none of these more likely scenarios happened: instead, London’s Olympic Village would turn 1,439 apartments into the United Kingdom’s first large-scale build-to-rent neighbourhood, side by side with 1,369 homes provided as affordable housing

When I look back, the scale of Get Living’s initial founders, Delancey and Qatari Diar, their ambition at that time was breath taking, because they didn’t start small: they started very big at what we now know as East Village.

Re-reading the Montague Report last week showed me just how far the sector has come since 2012 and how bold the vision for East Village was.

It seems amazing that Sir Adrian could only highlight the “real potential” of the sector when billions have flowed into build-to-rent ever since.

The product, proposition and placemaking encapsulated by the best build-to-rent developments has lifted large swathes of London and regional cities as well as providing a new generation of residents with rented apartments which are a world away from the poorly managed and often, neglected, rented homes where many once lived.

East Village itself has seen its own generation of early adopters put down roots and shape their new neighbourhood and community, providing the vibrancy for its parks, to creating the buzz in its independent shops, bars and restaurants, which have become their regular haunts.

COVID-19 was defining for East Village, with the community gelling like never before. At Get Living we made 2,000 unprompted calls to our residents during the pandemic to check on their well-being; we maintained standards of management by not putting any of our team on furlough.

The standards expected by our residents continue to rise, and we are always looking to hire the best people with the right aptitude and attitude to operate successfully within the high- performance culture which build-to-rent now encompasses.

Technology is also driving the build-to-rent sector now. When Get Living pioneered zero deposit leases in the mid-2010s this was seen as cutting edge: now renters are beginning to expect the most sophisticated asset management apps in their homes.

So where does the UK’s build-to-rent sector go in the next 10 years?

With inflation forecast to reach more than 15% this winter and interest rates certain to rise as well, higher build costs will put pressure on some developers and owners in the sector.

This could prompt consolidation as stronger players take advantage of opportunities and may ultimately lead to a few leading platforms with an enhanced proposition for residents and more viable investments for shareholders.

This increased but healthy competition will lead to more differentiation emerging between what the key players offer – which taking us back to the genesis of UK build-to-rent 10 years ago, can only be good.

Because growing a build-to-rent sector in this country was always, after all, about widening choice and providing a better standard of living for the millions of renters up and down the country, which they deserve.

by Rick de Blaby , CEO

British Property Federation