This week we would like to share with you the recent JLL’s European Multifamily Investment Market Update which revealed the major build-to-rent hotspots in Europe. London, Manchester, Leeds, Birmingham and Brighton all made it into the top 20 European cities for build-to-rent investment.
What is Build-to-rent?
Build-to-rent is a new housing development where all the properties are built for rental purposes, not sale. It is the most contemporary development type in the Private Rented Sector (PRS) offering housing across the full spectrum of privately rented accommodation in terms of scale and service offering, often with affordable housing being integrated through discounted market rental homes.
On the list of top European build-to-rent hotspots, London was fourth out of 20 cities. In the capital, activity in the sector amounted to more than €2bn during 2018. Manchester made it in 11th with investment volumes over €715m. Leeds, Birmingham and Brighton followed in 15th, 16th and 17th with €400m, €330m and €325m, respectively.
Regional cities like, Manchester, Birmingham and Leeds are expected to soon surpass London in build-to-rent numbers. Demand for these types of privately-owned rental accommodation is extremely likely to keep increasing as renters are expected to outnumber homeowners by 2039. And with young professionals continuing to value city centre living, build-to-rent is an attractive option for many.
How can Build-to-rent benefit me?
Many councils are committing larger numbers of houses to be delivered across their local boroughs in an effort to try to keep up with demand. Manchester has just revised the number of houses it needs to deliver to 32,000 up from 20,000 for 2025 which means there are huge opportunities for developers. The uplift in required homes also means that the local council will be more amenable for planning applications if you follow their local planning guide.
As the pound is so weak at the moment, there is massive opportunity to use overseas angel finance to aid in the funding of developments. Please ensure that you use a solicitor who specialises in foreign investment when using this type of angel finance, making especially sure that the correct anti-money laundering (AML) checks have been carried out thoroughly.