Single-Family Rental (SFR) Sector News Summary: W/E 30th August 2024
This week’s roundup highlights the latest developments and key trends in the Single-Family Rental (SFR) Build-to-Rent Houses (BTRH) sectors across the UK and beyond. Below, we summarize the most significant news, partnerships, and market insights, along with the individuals and companies driving these developments.
The UK Government has launched a new taskforce
Aimed at accelerating housebuilding across the country, and reflecting a strong commitment to tackling the housing shortage. This initiative is part of a broader strategy to increase the supply of new homes, with a focus on overcoming the barriers that have historically slowed down development. The taskforce will bring together experts from various sectors, including construction, planning, and finance, to identify and implement solutions that can speed up the delivery of housing projects.
Key aspects of the taskforce's mandate include streamlining planning processes, addressing skills shortages in the construction industry, and exploring innovative construction methods. The government hopes that this coordinated approach will help meet its ambitious housing targets, addressing the growing demand for homes and contributing to economic growth.
This move has been welcomed by industry stakeholders, who see it as a positive step towards boosting housing supply, particularly in areas where demand outstrips supply. However, the success of the taskforce will depend on its ability to implement effective policies and secure the necessary resources to drive change.
For more details, you can read the full article [here]
David Phillips x Simple Life London Partnership
@David Phillips, a leading furniture provider, has partnered with Simple Life London to innovate and enhance the rental experience through high-quality, stylish furnishings. This collaboration emphasizes the growing importance of lifestyle-driven rental offerings in the SFR sector.
Read more [here]
Bloor Homes Receives Approval for Berkshire Residential Scheme
Bloor Homes has secured approval for a major residential scheme in Berkshire, reflecting ongoing momentum in housing development amidst rising demand. This project is set to add a significant number of new homes to the area, supporting local growth strategies.
Catch the details [here].
Resi360 Conference to Assess Labour's Progress on Housing
Property Week's upcoming Resi360 Conference will critically assess Labour’s progress on housing policies, particularly their impact on the BTR and SFR sectors. Industry leaders and policymakers will convene to discuss the effectiveness and future direction of these policies.
Learn more [here].
Labour’s Social Rent Hikes and Investment Potential
An expert opinion piece in property week argues that The Labour Party’s proposed social rent hikes could potentially attract more investment into the sector, countering fears that these policies might deter investors. This perspective is particularly relevant as investors seek stable returns in the evolving market.
Discover the analysis [here]
Eversheds Sutherland’s Strategic Results in Real Estate
Eversheds Sutherland Real Estate is leveraging its cross-practice capabilities to achieve strategic outcomes for clients in the real estate sector. Their deep sector expertise is proving invaluable in navigating complex legal landscapes and maximizing investment returns.
Read the full story [here].
Lobby Group Dismisses Concerns Over Renters’ Rights Bill
In a significant legislative debate, an influential lobby group Generation Rent has dismissed landlords' concerns over the Renters’ Rights Bill, arguing that the bill is essential for protecting tenant rights without harming landlord interests. This discussion is crucial as the bill progresses through Parliament.
Find out more [here]
Just Space’s Key Housing Demands for London
Just Space has outlined three key demands for improving housing policies in London. These include increasing affordable housing, ensuring community involvement in planning, and prioritizing sustainable development—key issues that resonate deeply with the SFR sector.
Explore the demands [here].
Sustainability in Housing Highlighted by Climate Action Platform
A post on We Don't Have Time underscores the crucial role of housing in sustainability, advocating for green building practices that align with environmental goals. This aligns with the growing trend of sustainable development in the SFR market.
Read more [here]
UK Housing Market Resilience Forecast by Knight Frank
Knight Frank’s latest research highlights the resilience of the UK housing market, with strong rental growth expected despite broader economic challenges. This report underscores the growing demand in the SFR sector, particularly for high-quality rental properties.
Get the insights [here]
West Midlands Mayor Pushes for £146M Social Housing Fund
The West Midlands Mayor Richard Parker is advocating for the release of a £146 million fund to support social housing development, a move that could significantly impact the region's housing landscape, particularly for affordable housing initiatives.
Read the full article [here]
North Devon Housing Crisis Intensifies
The housing crisis in North Devon continues to escalate, with supply struggling to meet demand. This situation highlights the urgent need for more housing solutions, including SFR developments in rural and suburban areas.
More details [here]
Citra Living Launches SFH BTR Homes in Nottingham
Citra Living Limited , a subsidiary of Lloyds Banking Group , has launched a new SFH BTR project in Nottingham, marking a significant step into the BTR market by a major financial institution. This move highlights the growing involvement of institutional investors in the SFR sector.
Read more [here]
Savills Research Shows Strong Demand for BTR Schemes
Savills ' latest research points to robust investor demand for fully let BTR schemes, reflecting confidence in the sector's long-term stability and profitability. This trend is expected to drive continued investment in high-quality rental properties.
Discover the research [here]
Deverellsmith Podcast with Alan Penfold
In the latest deverellsmith podcast, Alan Penfold shares insights from his extensive career in the BTR sector, offering valuable perspectives on the industry's evolution and future direction.
Listen to the podcast [here].
UK BTR Sector Updates by Redmayne
Redmayne Bentley LLP’s report on the UK BTR sector highlights key developments and investment opportunities, emphasizing the sector's resilience and growth potential amidst economic uncertainties.
Read the full report [here]
Coventry Housing Developer Sells 140 Homes to Rental Company
A significant transaction in Coventry saw Vistry Partnerships sell 140 homes to rental company Legal & General Capital , reflecting the increasing trend of institutional investment in the SFR sector.
Find out more [here]
Market Indicators to Watch by Property Week
Property Week’s analysis of market indicators offers valuable insights into emerging trends and potential opportunities in the UK housing market, particularly in the SFR and BTR sectors.
Explore the analysis [here].
British Property Federation Calls to Supercharge BTR Sector
The British Property Federation (BPF) is calling for measures to supercharge the BTR sector, emphasizing the need for supportive policies and increased investment to meet the UK’s housing needs.
Learn more [here].
PRS REIT Receives Requisition Letter
The PRS REIT plc has announced the receipt of a requisition letter, which may lead to significant operational changes. This development is closely watched by stakeholders in the SFR market.
Read more [here](https://btrnews.co.uk/the-prs-reit-announces-receipt-of-requisition-letter/).
Four Million New Homes Needed in the UK
In a BTR News article, Cushman & Wakefield highlight the need for four million new homes in the UK, with a focus on how the SFR sector can play a pivotal role in meeting this demand.
Read the article [here]
Placefirst Secures £31M Funding Deal from Pension Fund
Placefirst has secured a £31 million funding deal from the Greater Manchester Pension Fund , underscoring the growing interest of institutional investors in the SFR market. This funding will support the development of new housing projects, contributing to the sector’s expansion.
Find out more [here]
Landlord Investment Show's Upcoming Event
The Landlord Investment Show, a key event for landlords and property investors, will focus on the latest trends, challenges, and opportunities in the rental market. This event is crucial for networking and gaining insights into the future of the SFR sector.
Discover more [here]
This week’s developments underscore the dynamic nature of the SFR and BTR sectors, with significant investment, policy debates, and market shifts continuing to shape the landscape. As the market evolves, staying informed on these trends is crucial for stakeholders at all levels.
Friday 30th August 2024
Single-Family Rental (SFR) Sector News Summary: W/E 23rd August 2024
This week’s news highlights a range of significant developments across the Single-Family Rental (SFR) and Build-to-Rent (BTR) sectors. Below are summaries from the latest articles, each providing insights into the current landscape and future trends of the UK housing market.
Placefirst Begins Work on 146-Home BTR Scheme in Newcastle
Placefirst has commenced construction on a 146-home BTR scheme in Benwell Dene, Newcastle. This development is part of the company’s broader strategy to deliver high-quality, affordable rental homes across the UK, addressing the growing demand for rental housing.
Read more: [Placefirst Begins Work on Site]
The Concept of "Infrayimby" in Urban Development
This article explores the idea of "Infrayimby" (Infrastructure Yes In My Back Yard), advocating for a positive approach towards the development of essential infrastructure projects within local communities. The piece discusses how supporting such projects can lead to improved urban living environments.
Read more: [Are You an Infrayimby?](https://www.propertychronicle.com/are-you-an-infrayimby/)
Over 120 Jobs Lost as Modular Housebuilder Enters Administration
A modular construction company Modpods International has entered administration, resulting in the loss of over 120 jobs. This event underscores the challenges facing the modular construction industry and raises concerns about the viability of this building method in the current economic climate.
Read more: [Modular Housebuilder Administration]
Big portfolio landlords are the future of the PRS
This article in The Negotiator by Andy Jones Group Director of Corporate and BTR at Leaders Romans Group discusses the increasing importance of large portfolio landlords in the Private Rented Sector (PRS). It suggests that these landlords are becoming more dominant and will likely shape the future of the PRS, as they bring stability, efficiency, and professional management to the market. The shift towards larger landlords is driven by the need for more reliable and scalable rental housing solutions, especially in a market facing regulatory and economic pressures.
Read more: [Big Portfolio Landlords Are the Future of the PRS]
Legal & General and Vistry Secure £40M BTR Deal
Legal & General Capital and Vistry Partnerships have struck a £40 million deal to develop new BTR homes. This partnership reflects growing investor confidence in the BTR market, driven by strong demand for rental housing across the UK.
Read more: [LG and Vistry Strike £40M BTR Deal]
The Efficacy of Rent Control Policies
INSTITUTE OF ECONOMIC AFFAIRS (THE) provides an analysis of rent control policies, examining their impact on housing markets. The article argues that while rent controls may provide short-term relief, they can also lead to reduced investment in housing and long-term supply issues.
Read more: [Rent Control: Does It Work?]
A New Chapter for Housebuilding
David Thomas, chief executive of Barratt Developments plc pens an insightful piece that discusses the current state of the UK housebuilding industry, focusing on the need for innovation and adaptation to meet housing demand. It examines how builders are responding to economic challenges and evolving market conditions.
Read more: [A New Chapter for Housebuilding]
JLL Reports Growth in UK Housing Market Amid Economic Challenges
Despite facing economic difficulties, the UK housing market continues to show resilience, particularly in major cities. JLL’s report indicates that strong demand for housing is driving market growth, even in the face of inflation and interest rate pressures.
Read more: [UK Cities Show Housing Market Growth]
The Untapped Potential of the UK BTR Sector
A BTR News article discusses the significant growth potential within the UK BTR sector. Despite being relatively new, the market is poised for expansion, with opportunities for both developers and investors to capitalize on the increasing demand for rental properties.
Read more: [
Analysis of UK’s Affordable Housing Policies
A critique of current affordable housing policies by Steve Norris . The article argues that insisting on high levels of affordable housing in new developments can render projects unviable. The piece suggests that a more balanced approach could lead to increased overall housing delivery.
Read more: [Undeliverable Affordable Housing Policies]
Social Housing Rents to Rise Amid Stagnant Affordable Housebuilding
As affordable housebuilding efforts stagnate, social housing rents are set to rise as Rachel Reeves works on a plan for a 10-year formula to give councils and housing associations certainty. This article from The Guardian highlights the challenges facing tenants and calls for more effective policies to support affordable housing development.
Read more: [Social Housing Rents to Rise]
The Impact of the Bank of England’s Interest Rate Cut on SFR
The recent interest rate cut by the Bank of England has provided relief to the real estate sector, including the SFR market. Lower borrowing costs are expected to stimulate investment in rental housing, though there is also a concern that improved mortgage affordability could shift some renters towards homeownership.
Read more: [Bank of England Rate Cut]
Blackpool Estate Rejuvenation in £20M Housing Project
A £20 million project in Blackpool aims to rejuvenate a local estate, providing much-needed housing and improving the area's overall appeal. This investment reflects ongoing efforts to enhance urban living environments through targeted redevelopment.
Read more: [Blackpool Estate Rejuvenation]
Letta Reaches Full Occupancy at Three BTR Developments
The Peel Group,s Letta has announced full occupancy at three of its BTR developments, showcasing the strong demand for well-managed rental properties. This success underscores the potential for growth within the BTR sector as more renters seek high-quality, professionally managed homes.
Read more: [Letta’s BTR Developments]
Housing Hand Provides Insights into Rental Guarantor Services
Housing Hand has shared new insights into the role of rental guarantor services in supporting the rental market. Their findings highlight the importance of these services in helping renters secure homes, particularly in a competitive rental environment.
Read more: [Housing Hand’s Rental Insights]
Builders Add Housing Supply Through Single-Family Built-for-Rent Construction
Although from the US, analogous to UK delivery of homes. The article discusses how builders are contributing to the housing supply by focusing on single-family built-for-rent (BFR) construction. The BFR model is gaining traction as a way to meet the demand for rental homes, offering a scalable solution for housing shortages.
Read more: [Single-Family Built-for-Rent Construction]
Rund Appointed to Hyde Housing Association Framework
Rund Partnership Limited has been appointed to the HYDE HOUSING ASSOCIATION LIMITED framework, a move that strengthens their role in supporting affordable housing delivery. This appointment highlights Rund’s expertise in providing high-quality consultancy services to the housing sector.
Read more: [Rund Celebrates Appointment]
The Office for Place Seeks New CEO
Office for Place is recruiting a new Chief Executive Officer, signalling a renewed focus on improving design quality in new developments. This role will be crucial in shaping the future of urban design and planning in the UK.
Read more: [Office for Place Recruitment]
The Collapse in Section 106 Demand and Its Impact on Housing Delivery
An in-depth analysis of the decline in Section 106 agreements and its implications for housing delivery. The article explores how changes in policy and market conditions are affecting developers' ability to meet affordable housing obligations.
Read more: [Section 106 Collapse Impact]
Women in Home Building Programme Launched by HBF
Home Builders Federation (HBF) has launched a new programme aimed at encouraging more women to enter the home building industry. This initiative is part of a broader effort to diversify the workforce and address skills shortages in the sector.
Read more: [Women in Home Building Programme]
This newsletter aggregates the most pertinent developments affecting the SFR and BTR sectors, reflecting the dynamic nature of the market and the importance of staying informed on the latest trends and policies. Blackbird Real Estate Advisory remains committed to providing expert guidance and insights to navigate these changes effectively.
Single-Family Rental (SFR) Sector News Summary: W/E 16th August 2024
It's been yet another busy #SFR week. Welcome to the latest edition of our SFR Industry Weekly Round-Up, where we provide key updates and insights into the Single-Family Rental (SFR) market and related sectors. This week, we focus on significant financial moves, acquisitions, and policy discussions that could impact the UK's housing market. Stay informed with Blackbird Real Estate Advisory for the latest trends and strategic developments in the industry.
Tilia Homes Secures £125m Sustainability-Linked Debt Funding
Tilia Homes has secured a £125 million sustainability-linked debt funding package with HSBC UK and Homes England , aimed at advancing sustainable homebuilding initiatives across the UK. [Read more]
Citra Living Expands Portfolio with 159 New Homes
Citra Living Limited , a branch of Lloyds Banking Group , has acquired 159 single-family homes from Morris Homes Ltd for its build-to-rent (BTR) portfolio, marking a significant expansion in the UK's rental market. [Read more]
Calls for Sustainable Construction in New Developments
Local groups in Cambridge are calling for new homes to be built with a focus on sustainability, using local materials and ensuring energy efficiency to meet future demands. [Read more]
Vivid Increases Development to Over 1,500 Homes Annually
Housing association VIVID has increased its development output to over 1,500 homes per year, reflecting its commitment to meeting the housing needs in southern England. [Read more]
Rise of Build-to-Rent in the UK: A Review
Writing in BTR News, Richard Berridge reviews Brendan Kilpatrick's book on the growth of the BTR sector in the UK, discussing its resilience and potential for future expansion in a changing market. [Read more]
Surge in Single-Family Build-to-Rent Investments
According to Knight Frank, Investments in single-family BTR properties are on the rise, driven by strong demand for suburban rental homes and the promise of stable returns. [Read more]
Senior Living Needs Greater Focus
Birchgrove's Marcus Hodges issues an urgent call to elevate senior living within the #BTR market, highlighting the growing need for housing solutions tailored to the ageing population. [Read more]
BCIS Launches Whole Life Carbon Measurement Tool
BCIS introduces a new tool to measure the whole-life carbon impact of buildings, supporting sustainable practices in construction and design. [Read more]
UK House Prices and Inflation Update
The Office of National Statistics reports that UK house prices have stabilized, but rent prices continue to rise, underlining the persistent supply-demand imbalance in the housing market. [Read more]
Landlords Warn Against Rent Controls
A survey by the National Residential Landlords Association - NRLA in The Negotiator indicates that a third of landlords would consider selling their properties if rent controls are implemented, which could worsen the housing shortage. [Read more]
Legal & General Secures £40m for Coventry BTR Project
Legal & General Capital has finalized a £40 million investment deal with Vistry Partnerships to develop 147 single-family rental homes in Coventry, reinforcing their position in the UK’s BTR market. [Read more]
New Towns as a Solution to the UK Housing Crisis
An article in The New York Times discusses the potential of new towns to address the UK housing crisis, drawing on historical examples and current urban planning challenges. [Read more]
UK House Price Growth Steadies; Rent Rises Persist
A report from A J Bell Inc says that house price growth in the UK has plateaued, while rental prices remain high, reflecting ongoing challenges in the housing market. [Read more]
SFR Market as a Keystone of the Rental Market
Ascend Properties Operations Director Adam Stephenson analyses how the single-family rental market has become a cornerstone of the UK rental sector, offering stability and growth opportunities. [Read more]
TPG Acquires Quintain Ireland from Lone Star
TPG has acquired Quintain Ireland from Lone Star Capital , marking a strategic expansion in the European real estate market. [Read more]
This week's round-up highlights the dynamic nature of the #SFR and #BTR sectors, with significant investments and policy discussions shaping the future of the UK's housing market. From sustainability-linked funding to the rise of single-family rentals, these developments underscore the need for strategic growth and innovation in addressing the UK's housing challenges.
Richard Berridge . Blackbird Real Estate Advisory.
Single-Family Rental (SFR) Sector News Summary: W/E 9th August 2024
Welcome to this week’s edition of SFR News, where we bring you the latest updates and insights from the single-family rental sector. This week's highlights include significant investments, project approvals, regulatory updates, and key industry appointments.
Legal & General Capital's suburban build-to-rent (#BTR) business has achieved its first income and continues with land acquisitions, highlighting the growing financial viability and investor interest in suburban BTR projects. [Read more]
Placefirst and Town have secured planning approval for a single-family home BTR project at Nile and Villiers. This development aims to enhance the quality and diversity of rental housing available to residents. [Learn more]
Stockport Council's Development Chief Paul Richards revealed details of a 4,000-home regeneration project, which is set to revitalize the area with a mix of housing options and support community growth. [Details here]
The ASR Dutch Core Residential Fund has been awarded the best BREEAM in-use residential building, emphasizing the importance of sustainability in residential development and setting a benchmark for future projects. [Find out more]
An upcoming webinar from the Passivhaus Trust on building Passivhaus homes with heat pumps will provide insights into sustainable building practices. This event is essential for those looking to enhance energy efficiency in new builds. [Register here]
The Negotiator reports that the UK government is considering stricter tenant eviction rules, which could significantly impact landlords and tenants. The potential regulatory change emphasizes the need for balanced policies that protect both parties. [Read more]
The Labour Party has confirmed a minimum Energy Performance Certificate (EPC) requirement for landlords. This measure aims to improve the energy efficiency of rental properties, contributing to broader environmental goals. [Learn more]
Sigma Capital Group Limited has acquired its first Albion Place single-family homes from Kellen Homes . This acquisition highlights Sigma's ongoing growth and investment within the SFR market. [Details here]
BTR News reports that Gatehouse Living Group has appointed James Sarmecanic as the new Finance Director, reflecting strategic leadership changes aimed at enhancing financial management and supporting company growth. [Read more]
Property Week reveals that Investor appetite for UK residential properties is driving a shift towards long-term rental models, reshaping the housing market and making rental properties an increasingly attractive investment option. [Find out more]
Ascend Properties has appointed Daniel Mendez as Associate Director of Property, signalling strategic growth and strengthening its leadership team to better serve the market. [Learn more]
Knight Frank has released its Build-to-Rent Market Update for Q2 2024, offering insights into current trends, investment activity, and market dynamics within the BTR sector. Contact Oliver Knight or Lizzie Breckner for more info.[Read and download the report]
An opinion piece by Jas Bhalla in the Architects’ Journal discusses how the housing debate is becoming increasingly toxic, exacerbated by election slogans and political rhetoric. It calls for a more constructive and less divisive discourse on housing issues. [Read more]
TheBusinessDesk.com reports that a £2.5bn housebuilder mega-merger between Barratt Developments plc and Redrow faces competition hurdles from regulators, which could have significant implications for the construction and housing markets. [Details here]
Think tank Resolution Foundation finds that asking people to move to smaller homes is ineffective, highlighting the challenges in managing housing space and the need for alternative strategies. [Read more]
An insightful piece from Andy Jones of Leaders Romans Group explores how build-to-rent (BTR) has the potential to de-risk development, offering stability and long-term returns for investors. [Learn more]
A reflective article in BTR News from Richard Berridge of Blackbird Real Estate Advisory explores marketing in the SFR sector and discusses the essence of naming and brand, suggesting that the core value remains unchanged despite the terminology used. [Read more](https://btrnews.co.uk/a-rose-by-any-other-name-would-smell-as-sweet/)
This week’s updates reflect the dynamic nature of the SFR sector, from significant investments and strategic acquisitions to regulatory changes and sustainability achievements. Stay tuned for more insights and developments in the coming weeks.
Single-Family Rental (SFR) Sector News Summary: W/E 2nd August 2024
This week has seen significant developments in the Single-Family Rental (SFR) sector, touching on rental reforms, new housing approvals, policy shifts, and key market trends. Here’s a roundup of the most impactful news.
Corporate Landlord's View on Labour’s Renters’ Rights Bill
Landlord Today(https://www.landlordtoday.co.uk/rental-reform/2024/7/a-corporate-landlords-view-of-labours-renters-rights-bill)
Wise Living's Charlotte Armstrong offers insights into Labour's Renters' Rights Bill, highlighting potential benefits and challenges for landlords, including impacts on rental agreements and tenant protections. The Bill aims to enhance renters' rights, with particular focus on security of tenure and rent controls.
Surge in Rental Demand in Core Cities
Buy Association Group(https://www.buyassociationgroup.com/en-gb/news/rental-demand-core-cities/)
The report from Buy Association Group indicates a surge in rental demand across major UK cities, driven by urbanisation and demographic shifts. This trend underscores the importance of strategic investment in urban #SFR properties to meet growing demand and provide quality rental housing.
Approval for 196 Mixed-Tenure Homes
Vistry Group, in partnership with Homes England and Paradigm Housing Group , has received approval for 196 mixed-tenure homes. This project in Oxfordshire highlights the continued push towards diverse housing solutions, combining private rental, affordable housing, and market sale units to create balanced communities.
ARL Manchester BTR Study Tour 2024
The ARL(https://thearl.org.uk/news/a-mancunian-odyssey-the-arl-manchester-btr-study-tour-2024
Yardi's Chloe Sachikonye reports The Association for Rental Living's Manchester BTR study tour highlights innovative approaches and developments in the Build-to-Rent (BTR) sector. Participants, including developers and investors, explored new projects and discussed strategies for enhancing the BTR market, with insights applicable to SFR investments.
New Towns Taskforce Policy Statement
GOV.UK(https://www.gov.uk/government/publications/policy-statement-on-new-towns/policy-statement-on-new-towns#further-detail-on-the-new-towns-taskforce)
The government’s policy statement on New Towns outlines strategic initiatives to develop sustainable communities. This presents opportunities for SFR investments in these emerging areas, supported by infrastructure and planning frameworks designed to foster long-term growth.
Changes to National Planning Policy
GOV.UK(https://www.gov.uk/government/speeches/deputy-prime-minister-on-changes-to-national-planning-policy)
The Labour Party's Deputy Prime Minister Angela Rayner detailed changes to the NPPF, setting a target of 370,000 new homes annually and 1.5 million within five years. These revisions promote sustainable development and are expected to benefit the SFR sector by simplifying planning processes and increasing land availability.
Cushman & Wakefield Appoints New Head of Living, Land, and Development
Cushman & Wakefield(https://www.cushmanwakefield.com/en/united-kingdom/news/2024/07/appoints-head-of-living-land-and-development)
Cushman & Wakefield has appointed Anthony Dixon as head for Living, Land, and Development, signalling the firm's commitment to expanding its presence in the SFR and broader residential markets. This move is expected to enhance their strategic capabilities in managing and developing residential properties.
Brave New Dawn for BTR
BTR News(https://btrnews.co.uk/a-brave-new-dawn)
JLL's Paul Winstanley in BTR News reports on the optimistic future for the BTR sector, emphasising the need for continued innovation and investment to meet growing demand. These insights are relevant for the SFR sector, highlighting the importance of adapting to market trends and consumer needs.
Gatehouse IM and Carlyle JV Secures SFH BTR Homes
BTR News(https://btrnews.co.uk/gatehouse-im-and-carlyle-jv-secures-sfh-btr-homes-from-avant/)
Gatehouse Investment Management and The Carlyle Group's joint venture has secured a portfolio of single-family homes for BTR from Avant Homes . This acquisition reflects strong investor confidence in the SFR market, highlighting the growing appeal of single-family rental investments.
Minimum of 4M Homes Needed to Meet Demand
Property Week(https://www.propertyweek.com/news/minimum-of-4m-homes-needed-to-meet-demand-says-cw)
Property Week reports that the UK needs at least 4 million new homes to meet demand, underscoring the critical role of the SFR sector in addressing this shortage. Cushman & Wakefield's report calls for strategic planning and investment to ensure adequate housing supply.
Avant Homes Acquires Site for £40M Residential Scheme
Property Week(https://www.propertyweek.com/news/avant-homes-acquires-site-to-deliver-40m-resi-scheme-in-acklam)
Avant Homes has acquired a site in Acklam for a £40 million residential project. This development includes a mix of housing types, furthering the trend of creating diverse residential communities that include SFR options.
Climate is Right to Boost Housing
Property Week(https://www.propertyweek.com/insight/climate-is-right-to-boost-housing)
Greencore Homes' Jon Di-Stefano discusses how favourable economic conditions are encouraging housing development, presenting opportunities for SFR growth. The report highlights the importance of sustainable practices and strategic investments in boosting the housing market.
Single-Family Housing Boom
Green Street(https://greenstreetnews.com/article/single-family-housing-is-booming-but-do-consumers-know-that/)
Green Street News reports on the significant growth in single-family housing, though consumer awareness remains low. Increasing visibility of SFR benefits could drive further market expansion and attract more investors.
PRS REIT News
Polaris(https://polaris.brighterir.com/public/prs_reit/news/json_rns/story/r7pp01r)
The PRS REIT plc’s latest updates reflect robust performance and strategic growth in the SFR market. The REIT's activities demonstrate resilience and ongoing investor interest in single-family rental properties. The REIT declared an interim quarterly dividend of 1.0 pence per ordinary share in respect of the fourth quarter (April - June) of its financial year ended 30 June 2024
and finally, at last ...
Relief for Real Estate as Bank of England Cuts Rates
Green Street The Bank of England's recent interest rate cut from 5.25% to 5.0% provides relief for the real estate sector, including SFR. Lower borrowing costs can stimulate investment and development, making it more affordable to finance SFR projects and potentially boosting market growth. Although a small reduction, it's a positive signal of things to come. With the markets putting pressure on the US administration to follow suit, this looks like it could be a trend over the next 6-12 months.
This week’s developments highlight the dynamic nature of the SFR sector, driven by policy changes, market demand, and strategic investments. As the sector continues to evolve, engagement with institutional investors and innovative approaches to housing development will be crucial in meeting the UK's ambitious housing targets. The reduction in interest rates is an important step forward.
Richard Berridge: Blackbird Real Estate Advisory 2nd August 2024.
Single-Family Rental (SFR) Sector News Summary: W/E 26th July 2024
Placefirst Acquires SFH BTR Homes at The Rise
Placefirst has expanded its portfolio by acquiring single-family homes for Build-to-Rent (BTR) at The Rise development. This acquisition is expected to significantly enhance the availability of high-quality rental homes in the area, contributing positively to the growth of the BTR sector. The strategic move aligns with Placefirst's vision of providing sustainable and well-managed rental homes across the UK.
Government's Approach to Renting Under Scrutiny
A recent article from Property Reporter discusses the implications of the new bill proposed by the government, highlighting the necessity for the government to fully understand the rental market's complexities. Key areas needing attention include tenant rights, landlord regulations, and the economic policies affecting rental affordability. The analysis underscores the importance of a balanced approach to policy-making to ensure fair and effective regulation of the rental market.
Halifax Investment Report Highlights PRS Growth
Halifax's latest investment report underscores strong growth in the Private Rented Sector (PRS), driven by increased demand for rental properties. The report indicates that continued investment in the PRS is crucial to meet the housing needs of a growing population. It suggests that the sector remains robust and attractive for investors, despite broader economic uncertainties.
Build-to-Rent Sector Reacts to King's Speech
Industry leaders have reacted positively to the King's Speech, which outlined the government's commitment to supporting the BTR sector. Key initiatives include measures to streamline planning processes and encourage sustainable development practices. These proposed changes are expected to facilitate smoother project approvals and enhance the sector's contribution to addressing housing shortages.
Lloyds Banking Group's Sustainability Leadership
Lloyds Banking Group has appointed a new Group Director of Sustainability, signalling a stronger focus on integrating sustainable practices within the BTR sector. This move is anticipated to drive greener building initiatives and promote long-term environmental benefits, aligning with the increasing demand for sustainable living solutions among renters.
Significant Growth in PRS and BTR Markets
Yahoo Finance reports robust growth in the PRS and BTR markets, fuelled by rising rental demand and heightened investor interest. The article highlights the ongoing need for continued development to address housing shortages and meet tenant expectations, emphasising the sector's resilience and attractiveness to investors.
Affordable Rent Crisis in Australian Suburbs
The Mercury highlights a "deeply concerning" trend where affordable rental options in middle-ring suburbs are becoming increasingly scarce. This shortage poses significant challenges for families seeking affordable housing, urging policymakers to address the affordability crisis to prevent further socio-economic disparities.
Path Cleared for Blackburn Housing Development
Nearly 600 new homes are set to be developed in Blackburn after clearing regulatory hurdles, according to Place North West . This development will provide much-needed housing and is a significant boost to the local BTR market, contributing to economic growth and community development.
Renters' Rights Bill Introduced
Trowers & Hamlins provides insights into the newly introduced Renters' Rights Bill, aimed at enhancing tenant protections and ensuring fair treatment in the rental market. This legislative effort responds to growing concerns about tenant rights and rental affordability, seeking to balance the interests of landlords and tenants.
Pretium Raises $1.5 Billion for Single-Family Housing Fund
Pretium has successfully raised $1.5 billion for its sixth single-family housing fund, surpassing its target. This substantial investment reflects strong investor confidence in the SFR market and will support further development and acquisition projects, indicating robust future growth prospects.
Moorfield's Hub-and-Spoke Fund Model
PERE News covers Moorfield Group's successful raising of £330 million for its innovative hub-and-spoke fund model. This approach aims to create a network of interconnected properties, enhancing operational efficiency and tenant satisfaction, thereby setting a new standard in property management.
Sigma's Major Fundraising Initiative
Green Street News reports on Sigma Capital Group Limited's new chapter, marked by a significant fundraising initiative. This effort aims at accelerating growth and expanding Sigma's footprint in the #BTR market, reflecting its strong market position and growth strategy.
Housing Market Analysis by Kate Barker
Building.co.uk features an analysis by Kate Barker, who argues that the housing market is in a worse state today than it was 20 years ago. Barker calls for urgent policy interventions to address housing shortages and improve market conditions, highlighting the critical issues facing the housing sector.
SFH BTR Market Update from Knight Frank
BTR News reports on Knight Frank 's update on the #SingleFamilyHomes #BTR market, noting continued growth and increasing investor interest. The update emphasises the importance of quality management and sustainable development practices in maintaining sector momentum.
PRS REIT's Fourth Quarter Update
The PRS REIT plc has released its fourth-quarter update for 2024, showcasing strong performance and continued expansion. The report highlights new acquisitions, development progress, and financial stability within the REIT's portfolio, reinforcing its market leadership.
Case Study: Sigma Capital
HomeViews Business presents a case study on Sigma Capital, detailing its strategic approach to expanding its BTR portfolio. The study highlights key successes and lessons learned, providing valuable insights for other industry players aiming to replicate Sigma's success.
The past week has seen significant developments in the SFR and BTR sectors, marked by continued growth, strategic acquisitions, and a focus on sustainability. These trends underline the importance of ongoing investment and policy support to meet the evolving needs of renters and investors alike. For further information and detailed analysis, visit Blackbird REA’s website. Here
Richard Berridge. Blackbird RE Advisory 26th July 2024
Single-Family Rental (SFR) Sector News Summary: W/E 19th July 2024
Gatehouse IM Expands UK Rental Portfolio
Gatehouse Investment Management has significantly expanded its UK rental portfolio with two notable acquisitions. First, the company acquired 82 single-family build-to-rent (BTR) homes from Persimmon Homes for £22 million. This acquisition is part of Gatehouse’s strategy to bolster its presence in the UK rental market and enhance its property offerings. Additionally, Gatehouse secured another 105 SFR homes from MJ Gleeson Group Limited for £18.5 million, further expanding its portfolio and reinforcing its commitment to the SFR sector.
Record High Investment in UK Build-to-Rent
The UK BTR sector has reached a record high in investment activity during the first half of 2024. The surge in investments underscores the growing confidence in the BTR market as a stable and profitable investment opportunity. The increased demand for rental properties, driven by changing housing preferences and economic factors, has attracted significant capital from both domestic and international investors.
Aviva and Packaged Living’s £55 Million Deal
Aviva Investors has agreed to a £55 million deal to fund Packaged Living ’s single-family housing BTR scheme in Cambridge, known as Franklin Gardens. This project aims to deliver high-quality rental homes and is expected to set a benchmark in the SFR sector with its focus on sustainability and modern living amenities.
Pioneering Rental Platform Achieves High Off-Plan Reservations
Letta ,A pioneering rental platform has achieved exceptional off-plan reservation rates, indicating strong market demand and investor confidence. The platform’s innovative approach to rental housing, focusing on community building and tenant satisfaction, has resonated well with potential renters.
Significant Investment Needed for Future Growth
According to Savills , a £300 billion investment is required to meet the future growth needs of the private rental sector. The report highlights the need for substantial funding to address the increasing demand for rental properties and to support the development of new housing stock across the UK.
Casa by Moda Launches in Doncaster
Casa by Moda has launched a new show home in Doncaster, aiming to redefine rental living in the area. The development focuses on providing high-quality rental homes with a strong emphasis on lifestyle and community, catering to the growing demand for premium rental properties.
Challenges in the BTR Sector
Despite the growth and investment in the BTR sector, there are concerns over a significant slump in building starts. This slowdown could impact the supply of new rental homes, potentially hindering the sector’s growth and the ability to meet rising demand.
Continued Growth in the North West
Placefirst and Miller Homes Ltd continue their growth in the North West with a forward funding deal. This partnership aims to deliver more rental homes in the region, addressing the high demand for quality rental properties.
Affordability and Rent Caps
Recent discussions around rent caps and housing affordability have highlighted the ongoing challenges in balancing tenant protection with market viability. Policymakers are urged to consider the long-term impacts of rent control measures on the availability of rental housing.
Demographic Trends in SFR Housing
Research indicates that a diverse demographic is now residing in single-family rental homes, including young professionals, families, and older adults. This shift underscores the broad appeal of SFR properties and the need for varied housing typologies to meet different tenant needs.
The past week has seen significant activity and investment in the UK Single-Family Rental (SFR) sector. Major acquisitions by Gatehouse IM, record-high investments in BTR, and new developments like Franklin Gardens and Casa by Moda highlight the dynamic nature of the market. However, challenges such as building start slumps and the need for substantial investment to meet future growth indicate that while the sector is thriving, it must navigate complex issues to sustain its momentum. As the SFR market evolves, stakeholders must continue to adapt to changing demands and economic conditions to ensure long-term success.
Links to SFR Articles:
1. [Gatehouse IM Expands UK Rental Portfolio](https://propertyeu.info/Nieuws/Gatehouse-IM-expands-UK-rental-portfolio-with-22m-acquisition/d1e96e84-c7fc-4aea-99a2-318f28401715)
2. [Gatehouse IM Acquires 82 Single-Family BTR Homes from Persimmon](https://benews.co.uk/gatehouse-im-acquires-82-single-family-btr-homes-from-persimmon/)
3. [UK Build-to-Rent Investment Hits Record High](https://btrnews.co.uk/uk-build-to-rent-investment-hits-record-high/)
4. [Unlocking Opportunities in the Single-Family Rental Sector](https://www.estateagenttoday.co.uk/features/2024/7/unlocking-opportunities-in-the-single-family-rental-sector)
5. [Pioneering Rental Platform Hits Exceptional Off-Plan Reservation Rates](https://www.thebusinessdesk.com/northwest/news/2136363-pioneering-rental-platform-hits-exceptional-off-plan-reservation-rates)
6. [£300 Billion Investment Required to Meet Future Private Rental Growth](https://www.scottishconstructionnow.com/articles/savills-ps300bn-investment-required-to-meet-future-private-rental-growth)
7. [Aviva Agrees £55 Million Deal to Fund Packaged Living Cambridge Single-Family Scheme](https://www.propertyweek.com/finance/aviva-agrees-55m-deal-to-fund-packaged-living-cambridge-single-family-scheme)
8. [Aviva and Packaged Living Fund Franklin Gardens SFH BTR](https://btrnews.co.uk/aviva-and-packaged-living-fund-franklin-gardens-sfh-btr/)
9. [Gatehouse IM Acquires Single-Family BTR Homes from MJ Gleeson for £18.5 Million](https://benews.co.uk/gatehouse-im-acquires-single-family-btr-homes-from-mj-gleeson-for-18-5m/)
10. [Gatehouse IM Acquires 105 SFR Homes from MJ Gleeson](https://btrnews.co.uk/gatehouse-im-acquires-105-sfr-homes-from-mj-gleeson/)
11. [Rent Caps and Housing Affordability](https://www.nahb.org/blog/2024/07/rent-caps-housing-affordability)
12. [Who Really Lives in Single-Family Housing?](https://greenstreetnews.com/article/who-really-lives-in-single-family-housing/)
13. [Casa by Moda Launches Show Home in Doncaster](https://www.doncasterfreepress.co.uk/lifestyle/homes-and-gardens/casa-by-moda-launches-show-home-as-it-prepares-to-redefine-rental-living-in-doncaster-4704606)
14. [Alarm Bells for Build-to-Rent as Building Starts Show Huge Slump](https://www.lettingagenttoday.co.uk/breaking-news/2024/7/alarm-bells-for-build-to-rent-as-building-starts-show-huge-slump)
15. [Placefirst and Miller Homes Continue Growth in North West with Forward Funding Deal](https://www.showhouse.co.uk/placefirst-and-miller-homes-continue-growth-in-north-west-with-forward-funding-deal/news/)
16. [UK BTR Investment Activity Hit Record High in H1 2024](https://benews.co.uk/uk-btr-investment-activity-hit-record-high-in-h1-2024/)
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