NHBC helped shape the conversation around the UK’s rented housing sector at a major industry conference last week.
Customer Relationship Director Tim Reid, participated in two sessions at the Build to Rent Forum in Wembley, this year themed around “shifting the dial” in rented living.
As joint event partner of the 12th iteration of this event, it was great to see that once again together leaders were brought together from some of the country’s largest operators, investors, builders and public sector bodies.
The economic backdrop
The day began with a keynote speech by Simon Atkinson from research firm Ipsos, who set out the current economic challenges facing the property sector, including climate change, political instability and global conflict.
He also highlighted that Ipsos research suggests public opinion can differ from personal experiences, with 61% of people in Britain agreeing that housing is not thought about enough even while 64% say they are happy with their own housing situation.
UK remains Europe’s top destination for cross-border investment
Next up, delegates heard from Emma Rosser, Senior Director at JLL, as she provided an international view.
Positively, she explained that investment in the UK living sector is up as cross-border buyers return despite economic volatility – with JLL research suggesting that investors view London as the fourth-strongest European city for future investment.
Rosser also noted that the UK remains Europe’s top destination for international capital, receiving 44% of all cross-border investment in the continent over the last 12 months, owing much to a transparent market and emerging subsectors like senior living, affordable housing and co-living.
The power of placemaking
Placemaking, meanwhile, was the focus of a keynote by Jace Tyrrell from Opportunity London.
He explained that Build to Rent property in the capital can be a complex proposition for international investors because of the city’s varying markets, authorities, demographics and geographies.
Tyrrell added that issues like planning challenges mean projects which used to take around three to five years to deliver now require between seven and nine, and he called on policymakers to create better conditions to enable quicker, more efficient development.
Capital&Centric’s Martin Crews showcased his company’s work in the Greater Manchester region and expressed his belief that perimeter towns such as Rochdale and Wigan will become more popular with Build to Rent investors.
He was followed by James Blakey from Moda Living, who shared multi-family projects like Mercian and Loudon’s Yard in Birmingham while citing close collaboration with the West Midlands Combined Authority as an example for others to follow.
Alastair Mullens from Canary Wharf Group added that community involvement with neighbouring residents can play a part, before Seb Loyn from YTL shone a spotlight on the Brabazon project in Bristol and the need for strong transport links in placemaking.
Not just a stopgap
A later conversation between Lindsay Garratt from legal firm Winckworth Sherwood and Craig Carson form Barratt London explored how the volume house builder sees Build to Rent as a “good bedfellow” to typical new home ownership.
Carson stressed that Barratt London’s investment is not merely a temporary stopgap during a period of slowing demand, explaining how the company’s brand in the capital can cater to the specific needs of London’s residents by providing quality rented living.
Blended living and the latest trends
Our own Tim Reid moderated this panel discussion, featuring Lucas Cross from Greystar, Damien Sharkey from HUB, Anna Hwang from Placefirst, Joanne Drew from Enfield Council and Chris Fletcher from Grainger plc.
Tim asked the panellists to share their views on the current market mood and provide their individual views on the challenges and opportunities ahead.
Cross began by championing the US-inspired ‘garden style’ typology that Greystar is deploying in the UK to positive effect, outlining it as an attractive option for potential placemaking projects.
But the panel agreed that the aim should not be for typologies to outcompete each other; instead, each has a role to play as the whole property sector delivers homes of all types to meet housing demand.
From a public sector viewpoint, Drew outlined that, post-Social and Affordable Homes Programme funding, councils will work in close partnership with both the private and public sectors to deliver homes.
However, build costs that exceed values and viability concerns around new-build multi-family Build to Rent homes were highlighted as key challenges.
The panel also noted that institutional investors remain nervous, especially when considering the UK amid growing global competition, but referenced multiple reasons for optimism.
These included promising signs of interest from overseas capital, local institutions supporting single-family developments and a belief that some of the supply-demand challenges are likely to be temporary.
Placefirst's Hwang, meanwhile, showcased Liverpool as an emerging Build to Rent destination.
The BTR sector’s quality partner
Speaking after the event, Tim said: “The Build to Rent Forum is always an exciting event that sees the sector’s leading names gather in one place.
“This year was no different and it was a pleasure to meet new faces as we all work to provide the quality new homes that everyone deserves.
“Our role extends from providing warranty and insurance to building control, data and other services that support developers and builders to protect their investments, making NHBC the Build to Rent sector’s quality partner.”
