Build To Rent sector will shake off Brexit uncertainty

The Build to Rent sector is likely to see out the uncertainty surrounding Brexit, according to Legal & General’s Build To Rent fund manager.

Mr Dan Betterton believes that while Brexit could lead to people putting off large personal decisions, such as purchasing a house, they will still need somewhere to live. As such, he believes the rental sector in Britain will benefit.

Renting resilience

Betterton said, ‘anecdotally, following the referendum, we are hearing demand from more people wanting to rent and not wanting to buy. When we look round the world to established build to rent markets, such as the US, the rental sector provides consistent demand to the construction industry regardless of market conditions-it is less cyclical than building for sale.’[1]

Mr Betterton also believes that there could be less competition for land between now and the end of 2016, with traditional housebuilders pausing land acquisition programmes. This will let Build To Rent investors to make their move.

‘The one downside is that a falling pound means construction materials purchased overseas become more expensive-a lot of cladding comes from abroad. But other overseas investors are seeing the exchange rate as an investment opportunity,’ he continued.[1]

Build To Rent sector will shake off Brexit uncertainty

Schemes

In January, Legal & General put forward plans to become a major player in the Build To Rent sector. The firm currently has three schemes underway.

The first is a scheme of 225 apartments in Salford, with residents slated to move in by May 2017.

In addition, there are two schemes at the planning stage. These are plans to build 168 apartments next to Bristol Temple Meads station in Bristol and further plans for 44 apartments at Walthamstow in north east London.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/7/build-to-rent-sector-riding-out-brexit-uncertainty-says-legal–and–general-chief