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number of ‘comfortable renters’ (middle-class & well-off ) is expanding too, representing 44% of the rental sector. T e lack of supply to meet increased demand (coupled with infl ation) has


driven up prices. According to the ONS, average private rents in England increased by 8.5% in the 12 months to September 2024 and are now £1,336. At the same time, the stock of homes for rent is down. According to Zoopla’s


Rental Market Report: September 2024, there is an average of 21 people competing for every rental property, more than double pre-pandemic levels.


THE GROWTH OF CORPORATE INVESTMENT In the last fi ve years, we have seen a substantial increase in ‘professional’ institutional investment in residential property investment, specifi cally Build to Rent (BTR). Surveyed in 2022, 70% global institutional investors stated that they anticipated being active in the suburban BTR market within the next fi ve years: a substantial increase from the 42% currently active. T is intention is borne out in recent analysis by the British Property


Federation (BPF) which shows that the Build to Rent (BTR) pipeline, which includes completed homes, those currently under construction and those in various stages of planning, now stands at over 273,700 units. It grew by 5% in the past year and the total number of completed units has now surpassed 120,000 units: a growth of 23% in completed stock over the past 12 months. And BTR is no longer limited geographically. Completed homes in London


reached 51,500 in Q3 2024, and the regions surpassed London, at 69,000 homes. Growth in the regions, at 31%, outpaced London by 13%. And so the BTR suburban community has evolved. Providing desirable


homes for families in fully-functioning serviced communities, this new product – which off ers growing families considerable fl exibility and a wide


“The rental sector is carving a positive future for itself, one which must be supported by policy, not penalised by it”


Andy Jones of Leaders Romans Group


range of options for a stress-free lifestyle, is undoubtedly the division of the property sector in which we will see the greatest growth over the next decade. T e emergence of this sector of the market is described in our white paper BTR suburban communities: the next stage in the evolution of Build to Rent.


NEW SERVICES TO SUPPORT THE PROFESSIONAL LANDLORD As the sector becomes more professionalised, new services are emerging to support these changes, particularly in terms of property investment and management. Platforms such as those off ered by LRG are designed to streamline the property investment process, providing comprehensive support to investors, from market insights and property analysis to secure transactions and real-time data. Centralising these functions enables landlords (both individuals and corporate investors) to save time, reduce complexity and make more informed decisions. Additionally, the focus on security and effi ciency is paramount. By


integrating features such as two-factor authentication (2FA) and encrypted document sharing, platforms ensure that transactions are secure, and user data is protected. T is is especially important for professional landlords who are managing large portfolios and dealing with signifi cant fi nancial transactions.


A POSITIVE FUTURE FOR THE RENTAL SECTOR T e speed by which BTR is evolving suggests that the drastic shortage of rental properties will continue to lessen. And while these changes will undoubtedly help ‘professionalise’ the sector,


this is not the result of the emerging legislation: it is in spite of it. New models of BTR have evolved because of the high standards – environmental, social and governmental (ESG) along with fi nancial transparency and insistence on a quality product – instigated by investors and developers. T e rental sector is carving a positive future for itself, one which must be


supported by policy, not penalised by it. Fortunately, we have moved on from the politics of the previous Secretary of State, who declared: ‘We need to shrink the private rented sector and get more people owning their own home.’ A combination of privately owned homes supplied by responsible individual


landlords, complemented by increased institutionally-owned BTR units, is vital to meeting unprecedented demand.


Andy Jones is group director, corporate (investment sales, lettings & BTR) at Leaders Romans Group


Housing Management & Maintenance April/May 2025


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