Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property118. Read the original article for full details.
Build-to-Rent Dominates Regeneration Areas: Lessons for Smaller Landlords
Research published by the NRLA on 17 September shows build-to-rent accounted for an average of 61% of new homes built across eight selected regeneration areas over the previous decade. In Stratford in London and Redcliff in Bristol, the reported proportion reached 87%.
What the Research Found
The findings come from joint research by NRLA Living and Bidwells, summarised by the NRLA. Build-to-rent describes housing developed specifically for renting, commonly operated as a managed scheme. The NRLA's summary argues that bringing residents into regeneration areas can also support local businesses and the development of mixed neighbourhoods.
The report is careful to note that these figures concern the selected areas only, and do not establish that buying beside a large rental development will produce higher rents or capital growth.
Questions Landlords and Agents Should Ask Locally
The article suggests starting with the people who would want to live in a regeneration area, looking at employment, transport and everyday amenities supporting demand. While a development brochure may describe an emerging neighbourhood, the author advises establishing which improvements are already in place, which are funded and which remain proposals.
For existing landlords and letting agents, the practical question is whether a property serves the people likely to benefit from the regeneration, at a rent they can afford. That means considering the actual journey to work, the layout of the home and nearby alternatives. A flat that looks ten minutes from a station on the map may feel different if the walking route is unpleasant.
Counting the Competition
The article urges counting the competition as carefully as the opportunity. New homes give prospective tenants more choice, so landlords should examine how many homes are planned, their sizes, likely rents and expected completion dates. The council's planning register, the developer's published information and Bidwells' build-to-rent map are suggested starting points.
It is important to keep a distinction between a proposed scheme, one under construction and homes actually available to rent, as each has a different significance for the next letting. Asking local agents what they are seeing in enquiries, viewings and agreed lettings is also advised. If similar flats are taking longer to let, or several developments are due to open together, that belongs in the cashflow assessment.
Comparing Offers from the Tenant's Perspective
A headline asking rent is only part of the comparison. Landlords should check what is included, whether an introductory offer affects initial cost, and what residents pay separately for services, parking or other facilities. Establishing which features people value through enquiries and tenant feedback is recommended before spending money imitating a neighbouring development. Improving warmth, storage, decoration or the speed of repairs may be a more useful response for a particular property.
For letting agents and inventory clerks, the research points to the value of local market knowledge, from walking routes and transport links to the genuine detail of what comparable managed schemes offer tenants.
Source: Property118