In today’s competitive build-to-rent market, it is no longer sufficient to put a treadmill in a communal space and call it a gym.
We’ve seen first-hand over the last two decades that the key to a successful buy-to-let investment is about putting the resident at the heart of their own living experience. This people-centric approach is more important than ever post-pandemic, as renters have higher expectations of their homes than ever before.
JLL recently published a tenant survey, revealing what renters are really looking for in their next rental home. Here are 6 renter priorities that buy-to-let investors simply can’t afford to ignore when considering their next property investment.
1. Prime city centre locations
Throughout property investment history, one factor remains the most important – location. Despite the rise in remote working, JLL recently reported a post-pandemic renaissance for city centre living, driving rental values up by up to 20% annually in cities such as Manchester and Birmingham. And the growth isn’t expected to slow down any time soon for these cities, both leading the UK forecasts for house price and rental growth over the next five years. Read our blog for a summary of growth projections and tips for where to invest in 2023.
In JLL’s recent survey, 92% of renters said that proximity to public transport was very important to them when looking for their next rental home; and 84% said proximity to shops and leisure facilities was very important.
2. Energy efficiency
When asked if the energy efficiency of their rental home has become more important to them over the past year, 76% of JLL’s respondents said yes. As energy bills hit record highs, the Energy Performance Certificate (EPC) rating of a development is a key decision factor for renters.
JLL’s analysis of EPC data shows city centre markets are more likely to have higher EPC ratings (A, B and C), than suburban or rural areas. Over 20% of EPCs completed in Manchester in 2021 were A or B rated, up from 12% a decade earlier.
3. Unrivalled amenities
As the flexible home-working trend is here to stay, amenities such as co-working space, private study booths and high-speed Wi-Fi in communal areas have never been more important. As ‘Gen-Z’ – the generation known as digital natives – enter the rental space, the demand for strong Wi-Fi is only increasing.
In JLL’s survey, 81% of respondents said they used the gym in their buildings. Many build-to-rent developments now have a competitive gym and fitness offering, sometimes including classes and personal training sessions. Very few have a swimming pool or spa facilities, and these premium amenities can drive higher rental returns. In fact, 68% of respondents said they’d consider paying more for on-site leisure facilities such as a gym and swimming pool.
4. Outdoor space
Another trend accelerated by the pandemic but here to stay, many city-centre renters are seeking access to outdoor space within their homes. Data from over 700,000 users of the rental app, Movebubble, revealed that interest in terraces increased by 204% post pandemic, highlighting the value of fresh air and a change of scenery. New developments are adapting to this demand where possible, providing communal terraces and gardens for residents to enjoy. Some city-centre skyscrapers also feature ventilation windows, giving residents access to fresh air in their apartments.
5. Aesthetic
Consistent with the rise of social media, young professionals (millennials and Gen-Z) are more concerned with aesthetics than previous generations. In a world where people share photos of every experience, from what they’re having for dinner to what they’re wearing, style and aesthetic are key factors for renters. By investing in purpose-built luxury apartments with a reputable developer, investors can usually guarantee state-of-the-art architecture and modern interiors with high-quality furniture packs.
6. Pet-friendly homes
Despite almost half of UK households keeping a pet, a survey by SpareRoom found that 78% of renters had experienced difficulty finding a pet-friendly home. As city-centre dogs become more popular in the UK, pet-friendly homes are a key differentiator from competitors in the rental market. Whilst investors were previously put off allowing pets due to fears of property damage, tenants with pets must sign a policy, agreeing they are responsible for any damage or inconvenience.
Through an effective people and placemaking strategy, activating vibrant communities is proven to attract and retain long-term happy residents.
Since 2004, Select Property has bridged the gap between the goals of investors and the demands of renters. Our residential brands The Prestige Collection and Affinity Living are built around the needs of the people that live in them. Marking the culmination of decades of experience, each of our brands directly serve the needs of today’s rental market. See our latest opportunities in the UK’s prime investment cities.