Cumming Group UK & Europe reposted this
Associate Director - Cumming Group EMEA Residential, Commercial Mixed Use and Regeneration Project Management Lead
After an insightful day at the Bisnow Annual Build to Rent Conference, I list below my key 'take-aways' and stats. Looking forward to help the industry build the homes of all tenures we so desperately need in the UK. Cumming Group UK & Europe are vastly experienced in the residential sector across of all tenures with a dedicated BTR team delivering projects across the UK. 1. BTR accounts for 4% of built residential schemes across the UK in the last decade, in Newham it’s up to 37%. 2. BTR appraisals tightening as rental growth slows, yields stay static and build costs continue to rise. The differential on the individual offer to residents on each development is now even more important or the defining factor to enticing occupiers. 3. ‘Stock’ levels and supply stay constrained. New market entrants are buying housing stock more akin to PRS offer i.e. without BTR amenities. Appetite amongst investors for good BTR stock remains strong. 4. Industry risk is around regulation (fire and environmental) and supply if rent controls are introduced. General consensus was that Labour won’t introduce rent controls but watch this space… 5. Local Planning Authorities still don’t understand BTR! Education by all in the industry needs to continue. As an example design mandated by the LPA i.e. 100% balcony requirements doesn’t tally with what the occupiers actually want or need. 6. Social value becoming more important to funders and investors but hard to measure as site specific on each development. 7. ESG also important to funders, investors and operators but less important currently to occupiers. The needle is slowly shifting. 8. We’re losing 80,000 social units per year but only building 60,000 units. BTR is part of the solution but isn’t the answer on its own. #projectmanagement #costmanagement #employersagent #buildtorent #residential
John Guest
1mo
Great summary Rob
Managing Director at Lewis and Hickey Ltd
1moThanks Rob. A very useful summary.