Tenants Willing to Move Further for Purpose-Built New-Build Properties

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High-Quality Amenities Attract Renters From Further Afield

According to new research from Savills, build-to-rent properties attract a higher proportion of tenants moving from further away areas. They found that these residents are willing to travel significantly further than others in the private rental sector.

They found that the median distance that renters move to live in a build-to-rent property in the UK is 5.8 miles. This is nearly double the average for the entire private rental sector and 39% further than new-build buy-to-let (4.2 miles).

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Why Are Renters Moving Further for Build-to-Rent Properties?

When finding a new place to live, renters usually look in their local area without venturing too far afield, so these findings are particularly surprising.

According to Savills’ blog, some of the reasons behind this difference lie in the unique characteristics of build-to-rent properties. One of these is improved efficiency compared to other types of rental homes. These new-build properties often include modern, luxury property amenities, and the maintenance and utility fees are good value for money, as they are split between many renters. The management and service available at build-to-rent developments add comfort and convenience, attracting renters from further away searching for an enhanced lifestyle.

Many build-to-rent properties are built in prime urban locations with good transport links. They can also offer better energy efficiency – a hot issue in the current market.

These rental properties are typically associated with higher monthly rental costs due to the high-quality amenities and attractive lifestyle on offer, making them a good prospect for those investing for a monthly income.

Therefore, build-to-rent accommodations are usually populated with higher-income individuals, which may also explain why they have the means to move further away in search of the perfect residence. Build-to-rent developers also often have the means for high-quality marketing and schemes to attract tenants outside the local market. Learn more about how UK property investment companies work with our dedicated guide.

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What Does This Mean for the Rental Sector?

But does this mean that build-to-rent properties aren’t providing housing for the local community? According to Savills, 53% of those who move into the residences still come from the same or an adjacent local authority. In this way, build-to-rent provides housing for the local market and attracts tenants from a wider area than other types of property in the private rental sector.

Savills blog states that the wider area of prospective tenants for build-to-rent properties shows a departure from the traditional confines of the private rental market, diversifying the pool of tenants and adding more choice to the rental landscape.

To learn more about UK property investment, take a look at our buy-to-let area guides, which cover topics such as investment property available in Halifax and investment property available in Milton Keynes.

Author

Jessica Ferris

Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.