Southampton ‘one to watch’ for build-to-rent developments, says Centrick
Strong industries and a large student population make Southampton a potential gold mine for build-to-rent (BTR) developers, according to a new report from national property firm Centrick.
The Love Where You Live research paper explores Britain’s booming BTR market, where it says developers are focused on creating engaged, fully rounded communities with amenities like screening rooms, private dining facilities, hosting kitchens, residents’ lounges and bookable services built in.
It could be an ideal model for Southampton, home to more than 40,000 students and plenty of thriving shipping and leisure businesses.
Southampton residents reported the longest planned rental tenure of six major cities analysed by Centrick, with 51 per cent of respondents intending to stay in their rental property for more than 12 months.
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And only a quarter of respondents in the city said they spent 40 per cent or more of their take-home salary on rental payments.
This level of affordability, coupled with a relatively undeveloped BTR sector in the city, could pose a sizeable opportunity for developers in the South East.
The model seems to be working for tenants, too – just 1 in 10 current BTR residents would consider going back to the private rented sector (PRS).
As for the most important consideration for those choosing a new home, it’s energy efficiency.
More than 83 per cent of both BTR and PRS renters said energy efficiency was important to them, with the availability of garden space, socialising space, parking and pet friendliness rounding out the top five wishlist – some things for would-be BTR developers to bear in mind.
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James Ackrill, founder of Centrick, said: “In recent years, the residential real estate landscape has witnessed the transformative trend of BTR housing.
“This innovative approach to housing investment, construction and management has swiftly emerged as a dynamic and relevant force in the housing market.
“Our objective is to dig into real world trends from real renters and explore the path forward for both those who seek to invest in BTR developments and those who aspire to call them home.
“This study is driven by the recognition that BTR is more than a mere housing solution – it’s a concept that, when well-executed, can redefine the way we relate to the places we live.
“It carries the potential to create not just spaces, but communities where people feel a genuine connection to their surroundings, fostering a sense of belonging and happiness in their daily lives.”
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