London’s build-to-rent market boosted by investment from US

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The build-to-rent market in London has grown rapidly in the last number of years. With further investment announced from the US our team of letting agents in Royal Docks take a look at what it might mean for tenants and landlords in London’s property rental market.

Build-to-rent property in London generates interest from foreign investors

The US property company Greystar, has recently announced a £750m fund to target the UK’s build-to-rent market. Having barely existed in the UK 5 years ago, the build-to-rent sector has become a fast growing part of the London property market.  This is looked upon as a relatively stable section of the property market in what has become an uncertain political environment.

Mark Allnutt, managing director of Greystar said, ‘There’s a huge amount of interest in build-to-rent because of its performance as an institutional investment: it generates strong cash flow, and people always need somewhere to live.’

Greystar are not the only foreign investors interested in pumping cash into the build-to-let market. Goldman Sachs and Legal & General have both announced their intention to invest in the schemes. This is in addition to local investment behind developments such as the Newfoundland built-to-rent apartments in Canary Wharf are due for completion in 2020.

Build-to-rent benefits for the property market in East London

Studies show that by 2025 the amount of tenants will have surpassed the amount of owner occupiers in the city. Build-to-rent will give great long term returns.

Build-to-rent is good because it offers greater potential, service and returns for both tenants and landlords, meaning both fair better in the long run.

Tenants will be renting new accommodation with fantastic amenities. Likewise, their properties will be professionally managed and this will give them a better service. There will be no hidden charges upfront other than deposit and rent in advance and there will be options for three year tenancies.

This provides more security as the landlord won’t just decide to sell the property from under their feet. It is a very secure venture for all concerned and one welcomed by the industry.

London’s growing rental population

Renting in London is not a new idea. London’s rental population has always been high but it is increasing. In 2016 a study showed that approximately 28% of all households in London were a part of the private rental sector. Studies now show that by 2025 that percentage will have increased by almost 12%. In short, the number of owner occupiers in the market will have been surpassed. This is a thriving market which provides solid returns over the medium to long term.

Interested in buying or letting in East London?

If you think that East London might be the place for you to invest in then give our team in Royal Docks a call today. We may have information on investment opportunities and build-to-let schemes in the locality. Simply click on one of the links below and soon you could be on your way to finding your next opportunity.

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