The UK’s residential rental sector is changing fast. In recent years, central Government has embarked upon a programme of radically overhauling the sector and implementing a series of legislative and fiscal measures, which will bring the UK’s rental sector into closer alignment with the U.S and the rest of Europe. As a consequence, the role of the small private landlord is being eroded and replaced with a new breed of investors, typically pension funds and larger scale landlords, who are focused upon scale, longer term tenancies, improved net operating income (NOI) and developing buildings which are purpose-built for renting (“Build to Rent”). Faced with the onslaught of reduced B2L mortgage relief, higher levels of Stamp Duty, increased health and safety legislation, the returns available to small private landlords are now looking far less attractive and the UK Government has made clear its primary focus for the sector is to encourage long-term institutional and private equity capital to rebalance the sector and improve standards.
JR Recruitment is one of the UK’s most vibrant and forward-thinking recruitment companies. According to the British Property Federation (BPF) there is currently c£60Bn of funding appetite seeking to invest in the UK’s PRS and more specifically Build to Rent (BTR) developments. JR Recruitment provide recruitment services to the PRS/Btr “Universe” in the following areas:
The BTR Market Today
Since the inception of the new BTR sector in 2013/14, there are currently c100,000 residential units across the whole of the UK at varying stages of evolution. Initially, the primary focus for BTR development was in Greater London but this has now spread to other major regional centres, such as Manchester, Birmingham, Leeds, Bristol as well as to sub-regional markets where there is latent demand. To date, around 12,000 have been physically delivered, the largest being the former Olympic Athletes village at Stratford London which comprises some 1,500 units. This will be rapidly overtaken by Quintain at Wembley with more 5,000 units when complete as well as Greystar at Greenford, West London with more than 3,000 units.