Centrick Property restructure their business to fully embrace the growth of the ‘Build to Rent’ property sector…
Centrick Property, in answer to the increasing demand within the ‘build to rent’ (PRS) sector, is excited to announce the creation of its own dedicated Build to Rent Asset Management Team. To assist with this development and the continued growth of the business, they will be bringing their Nationwide Asset Management Commercial Street branch in to the hub of the business. This will mean a less fragmented approach and give the business a more stable platform for future growth.
The UK Private Rented Sector has grown substantially in recent years and now accounts for approximately 16.5% of all households. Many believe that in 15 or 20 years’ time, there will be more renters than homeowners in the UK. This is due to a foreseeable lack of affordable ‘Built for Sale’ housing stock.
James Ackrill, Centrick Property’s chairman commented ‘This fast expanding sector of the property market gives Centrick Property the perfect opportunity to demonstrate our experience. Our business has been built on a foundation of property management, we then added the lettings and tenancy management sections and now with a dedicated ‘build to rent’ asset management team we can really build our expertise in this sector. We have a proven track record with the successful delivery of one of the first PRS schemes of its kind outside of London, Broadway Residences, built to rent by Birmingham based developers Seven Capital.’
The promotion of home ownership in the 1980s, to the detriment of all other housing forms, is now the victim of its own success; more people than ever are trying to buy their own home. However, demand for housing has outstripped supply. It is estimated that 240,000 new houses are needed per year to cater for demand, but on average we build only around half that number.
Build to rent schemes offer lifestyle facilities including workspaces, concierge services, communal roof terraces and gyms. Additional income for the investor can be generated from these facilities, although the prime objective is a contribution to place making and community building.
Tenants who feel they are part of a community tend to stay longer. This in turn reduces the risk of rent voids, which have a negative impact on net operating income. Studies show that people who know one other person in a building are 75% more likely to renew their tenancy. For people who know two other people this rises to 90%.
James Ackrill added ‘Effective building management enhances and protects the long-term value of a development. PRS investors are looking for income over long periods. Maintaining the quality of a site is important and as such Centrick Property offers a full onsite management service; communal spaces and services need to be well maintained, as they are part of the tenants’ extended home.’
Build to rent is increasingly becoming a more attractive business option for property investors.
Contact: Jane Morcom m: 07879 657009 e: jane.morcom@centrickproperty.co.uk
