Embracing Institutional Evolution in Residential Investment
The landscape of UK residential investment has undergone profound change over the past decade, and driving this transformation are institutional investors. Between 2012 and 2018, the value of the private rented sector (PRS) surged by over threefold, according to the Investment Property Forum (IPF). A resounding testament to this shift, institutional investors have injected a substantial £4 billion into the market in 2022 alone. This active involvement has not only redefined market dynamics but has also spurred innovation, ushering in new products and recalibrating rent benchmarks across diverse locales.
Revealing the Institutional Footprint: Insights into the Numbers
The appeal of the UK's real estate investment scene has prompted major institutional players to actively explore its opportunities. These investors are actively seeking chances to acquire property and execute substantial construction projects. This will continue to drive significant change and reform the residential lettings sector, introducing a variety of new residential options and reshaping rental dynamics across the UK.
Navigating the Build to Rent Odyssey: Envisioning Tomorrow's Homes
As we peer into the horizon, the spotlight turns toward the burgeoning Build to Rent (BTR) sector. In line with ongoingendeavours, the UK could potentially witness the emergence of 251,000 BTR homes, marking an astonishing 205% expansion of the current stock. This narrative extends beyond traditional multi-family city apartments, embracing high-calibre, professionally managed single-family houses - an entity known as single-family housing (SFH). A vivid reflection of this shift, investments in SFH reached an unprecedented peak, soaring to £408 million in the first half of 2023.
Redefining Demographics: Charting a New Tenant Landscape
Delving into demographics, BTR attracts couples or sharers, constituting a noteworthy 58% of its tenant base. This sharp departure from the 40% share observed in the broader private rented sector (PRS) underscores BTR's distinctiveness. Furthermore, BTR tenants mirror the broader renter community in terms of age and income, reflecting a cross-generational and diverse economic appeal. Notably, the influx of families with dependent children into the PRS - embraced by more than one in five families - underscores the significant demand for single-family housing.
“Leveraging insights from an extensive nationwide network of over sixty branches and fortified by asset and property management expertise, LIM offers a tailored, account-managed service.”
Elevating the Renter Experience: The BTR Paradigm
Amidst the fabric of residential experiences, the Build to Rent sector stands as a transformative exemplar. Crafted with precision to prioritize resident comfort, these homes find stewardship under dedicated operators, forging personal connections within a digital age. A nucleus of community, BTR nurtures quality living environments that inspire enduring bonds among residents, contrasting the often-transitory nature of urban centres. The resonance for stability is evident - over half of renter’s express interest in extended leases, with one in six willing to pay extra for a prolonged stay. For families, this inclination intensifies to one in four. This shift has induced a change in lease lengths; a majority of BTR providers now offer three-year lease terms, with more than half of tenancies being renewed.
Pioneering Excellence: Meet Hayley Peverley
The narrative of transformation finds its embodiment in the journey of Hayley Peverley, Managing Director of Lomond Investment Management (LIM). Armed with nine years of experience in the residential lettings market, Hayley's transition to LIM followed a distinguished seven-year tenure at JLL. Her span at JLL encompassed diverse London neighbourhoods, ranging from bustling south-east London to esteemed Prime Central London. During this tenure, Hayley made a mark by collaborating with individual landlords and distinguished institutional investors.
LIM: Pioneering a Holistic Vision
Acknowledging this multifaceted growth and the intricacies of portfolio and asset management, Lomond Investment Management has curated a team of seasoned industry professionals. Leveraging insights from an extensive nationwide network of over sixty branches and fortified by asset and property management expertise, LIM offers a tailored, account-managed service. Catering to developers and investors traversing the Build to Rent, single-family housing, lettings, and offshore markets across the UK, LIM ensures a seamless investment journey, transcending portfolio size and geographic constraints. With a robust pipeline and an unwavering commitment to excellence, LIM is steadfast in doubling its managed properties by the close of 2023, exemplifying pioneering commitment in the ever-evolving realm of residential investments.
