Single-Family Housing
David Ray Non-Executive Director
Non-Executive Director || Strategic Business Consultant || Experienced Board Advisor || Experienced Panel Chair || Growth Experience & Mindset || Solution Driven ||
Latest research from industry leaders, the British Property Federation, in conjunction with Get Living and M&G Real Estate predicts the #buildtorent sector will increase fivefold by 2032 with a value of ￡170 billion. This demonstrates the demand for the BTR sector; the question many property professionals ask is, where will our residents move to next?
Enter Single Family Housing, sometimes referred to as SFBTR.
What is a single-family home (SFH)
A single-family home is a property built for the rental market to service families. It's another form of build-to-rent; however, unlike most #BTR units, which appeal to single professionals, it's focused on young families, with a general demographic aged between 30 and 45, although not restricted to this age range.
Single Family Homes (SFH) are commonly built on the outskirts of towns and cities and tend to be more significant in size to accommodate a growing family. The development of the SFH market represents the success of the #BTR sector which continues to grow, with documented scale over the coming years. Simple Life, amongst others, is an excellent example of providing solutions for the SFH sector with many developments across the UK.
SFH is generally purpose-built for the rental market to serve young families. On more significant developments, SFH homes are offering space and functionality for families, which is becoming increasingly popular in the UK amid a demanding buyers' market due to steep increases in house prices. Packaged living has already committed to building 5,000 single-family home properties over the next five years. Areas such as Milton Keynes, Manchester and Newcastle are three of the areas targeted for investment, as mentioned by Herddle. ?
When you factor in increasing house prices, an increase in the cost of living, an unstable energy market and limited salary increases and people wishing to have an improved work-life balance, particularly following the implications associated with Covid-19, SFH is a desirable investment amongst private rental investors and developers, with many achieving reliable, healthy returns.?
Several reasons SFH is becoming a natural progression of BTR within the UK private rental sector include the following;
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Investment considerations
SFH is becoming an increasingly popular option amongst young professionals. With this rental option becoming the "new normal" within the rental property sector, now may be a good time to invest in this developing sector.?
Additional reasons to invest include:
Adopting the helicopter view of a resident life journey, many university students commence this journey in Purpose Built Student Accommodation (PBSA). This experience creates positive foundations for the maturing student to consider and evolve into a BTR residence as the standard and expectations of the resident are constantly evolving and the BTR sector is agile enough to aim and exceed industry standards.
In time, the resident may look beyond their BTR residence, and if BTR organisations invest in SFH, they could extend the resident's continued custom through this resident's modern living journey.
A number of sources have been researched to provide information for the article, such as;?