Build-To-Rent Gathering Pace in Wandsworth

Build To Rent In Wandsworth

The new build construction of 554 build-to-rent homes, which is part of the 1,034 homes built by Legal & General on the former B&Q site on Smugglers Way. Has raised the bar in terms of tenants' expectations when renting a property. We are starting to register prospective tenants who prefer the BTR model as opposed buy-to-let.

What are the differences between BTR and BTL? 

• Ownership – Buy-to-Let: individual landlords. Build-to-Rent: institutional portfolios.
• Management – Buy-to-Let: self-managed or via agent. Build-to-Rent: centralised, professional management.
• Tenant experience – Buy-to-Let: functional. Build-to-Rent: lifestyle-led, amenity-rich.
• Scale & efficiency – Buy-to-Let: dispersed units. Build-to-Rent: economies of scale, streamlined operations.

Downside to BTR

Its too early to predict a downside to this model, but one thing for sure it will face tests and the biggest is the regulatory changes in the private rental sector. They are round the corner with the introduction of the renters rights bill. This sector wont benefit from rent controls which would potentially squeeze the profit margins for their investors and more increased admin burdens such as ombudsmen membership, database compliance and tribunal handling to name a few.  

Meeting modern renter expectations

BTR is a new way of renting focused on providing everything within the development to encompass the lifestyle which the tenant expects like a fitness gym, amenities, social get togethers, shared communal areas like roof gardens, coworking spaces and some BTR developers include utility bills in their rent.

The Shift from Buy to Let

The biggest shift is due to Government support for BTR, which is reshaping the private rental sector. Due to tax hikes and anti-landlord legislation, small landlords are exiting the buy-to-let sector. The proliferation of the BTR in the borough is also having a knock-on effect on the amount of rent small landlords can achieve. A couple of years ago, a 1-bed flat in Wandsworth would have achieved £1800pcm. Now it is the same - unless its had a facelift because rents have settled down. And newer stock has pushed down prices for the older type properties which aren't as modern.

Landlords with Buy to Let property will have to reconsider what they can achieve when marketing their property, as overpricing will hinder their attempts to find tenants if they are not aware of the changes in the current rental market of Wandsworth.

Which is why Lets Find A Home can help you understand the marketplace when renting your buy to let property in Wandsworth. Explore our full range of services covered for landlords to discover how we can support your property needs. Alternatively, you can call Matt on 020 870 5800 for any questions you have about marketing your property with us.