Report downplays ‘posh’ image of Build To Rent flats and tenants

A new report suggests that past impressions of Build To Rent and other institution-funded rental units as expensive and concentrating on securing professional tenants may be wrong.

Residential fund manager Hearthstone Investments - which currently has £450m of assets under management - has published a report basedon data collected from its portfolio of 1,800 rental homes, a mix of houses and flats in low-rise apartment blocks.

It claims the rental homes provide accommodation for residents on average UK incomes. Residents have a broad range of occupations: nurses, police officers, warehouse operatives, software engineers and chefs. In 2023, 27 per cent of residents were key workers.

The report also shows that 55 per cent of residents had moved 10 miles or fewer when they moved into a rental home in the portfolio which the fund claims is  “evidence of how the new homes are meeting specific local needs.” 

An assessment of local infrastructure around the properties covered in the report shows that 83 per cent of homes are located within 500 metres of public transport and 81 per cent of homes within 250 metres of public green space. 

It also says 45 per cent of its developments were transformative regeneration projects of brownfield sites” while “the ongoing management of rental homes creates permanent local employment for agents as well as contractors.”

Cedric Bucher, chief executive at Hearthstone Investments, comments: “There is a desire to better understand what impact these investments have on the economy and communities where they are focused.  Our latest report helps us to paint a picture for investors of what is being delivered and for whom, demonstrating value above and beyond capital returns.” 

He continues: “The site selection strategy deliberately focuses on areas not only where the supply/demand imbalance will secure long-term, stable returns for investors, but also where there is good quality social infrastructure –  services, green space, access to public transport – all factors which contribute positively to residents’ wellbeing.

“There is also a great opportunity to drive employment both in the short and longer term with local people involved in the construction and ongoing maintenance of the homes.”