Experience Invest joins debate panel at National Landlord Investment Show
- 13 Nov 2018
- Company News
The National Landlord Investment Show is the UK’s largest residential property investment exhibition.
Held on 5th November 2018 in London’s Olympia Exhibition Centre, the iconic show welcomed thousands of landlords, investors and property experts throughout the duration of the one-day event.
The prestige of the event attracts some of the UK’s largest names in the property industry, with talks and workshops held to help landlords achieve the best results from their property portfolio.
This year Experience Invest’s Business Development & Acquisitions Director, Jerald Solis, joined a panel of property experts to discuss one of the sector’s most hotly debated topics; Build to Rent vs Buy-to-Let.
Build to Rent vs Buy-to-Let
With a record-breaking 5 million people in the UK currently living in privately rented accommodation, there is a real need for landlords and investors to provide good quality housing for the market.
The last few years has seen a wave of private investment in the UK’s Build to Rent sector, with developers and investors designing rental properties for a generation of people who prefer to rent over the high cost of buying a home.
With this in mind, Mr Solis joined a panel of experts – made up of Richard Bowser, Editor of Property Investor News, Martin Skinner, CEO of Inspired Assets and Paul Higgs, RICS and Millbank Land Academy – to discuss the merits of the Build to Rent and traditional Buy-to-Let sector.
3 key points
Expectations of tenants
As an advocate of the Build to Rent sector, Mr Solis wasted no time in highlighting the needs of today’s discerning renter. With the average renter aged between 20-40, many tenants rent a property in a location or within a development which they would not be able to afford, if they were to purchase the property with a mortgage.
Many tenants value the flexibility of Build to Rent housing, as it is often in prime town or city centre location, or close to a transport hub, making the properties very desirable on the rental market.
Renters also expect a lot more from their property with communal spaces – albeit inside or outside – a top of their wish list. High speed Wi-Fi, gyms and concierge services are also a plus for those living in rental accommodation.
Better quality of housing
In recent years, legislation has come into play to ensure that privately operated HMOs adhere to the latest health and safety checks.
Privately operated, buy-to-let property is often considered substandard when compared to new-build developments, with mould, damp and even infestations more common in older properties.
In many cases, buy-to-let property offers good quality housing however, it us up to individual landlords to ensure that all health and safety checks meet the latest industry standards.
Build to Rent property often delivered with a warranty – Experience Invest’s Imperial Square Luton will be delivered with a 10-year NHBC warranty – to ensure that the property will have a positive affect on the local housing market for many years to come.
Private management companies often operate the building in its entirety, offering tenants within a Build to Rent development a higher level of service.
Higher than average yields
According to Colliers International, Build to Rent projects command higher rents than comparable Buy-to-Let housing.
Data recorded in the first half of 2018 revealed that a one bed property can achieve 9.9% and 9.4% for a two-bed apartment more than a comparison on the Buy-to-Let market.
What’s more, happy tenants often live in properties for longer, helping landlords to reduce property void periods.
The future of property investment
According to the National Balance Sheet from the Office for National Statistics, real estate is the largest non-financial asset in the UK, with a NET value of £5.1 trillion.
Despite the 3% Stamp Duty levy applied to second homes and buy-to-let properties and recent changes to mortgage relief, the number of landlords in the UK increased by 5% between 2015-2016, reaching a record high of 2.5 million.
Whether HMO, Build to Rent or student accommodation, Buy-to-Let remains a popular choice for property investors.
The long-term picture for the UK’s housing market remains strong however, landlords and investors may wish to enter the Build to Rent sector to underpin their rental returns for many years to come.