Key Insights from the BTR Conference

Recently, our Director, Chris Dunning, attended the Build to Rent (BTR) Conference, hosted by the Movers & Shakers property networking forum. Here's a roundup of the key trends shaping the future of this dynamic sector:

• Investment and Market Stability
  Investment flows remain resilient, even amid ongoing uncertainties surrounding government budgets. While asset tenure has not deterred capital investment, clearer fiscal strategies are essential to bolster long-term market confidence.
   
• Tackling Aging Housing Stock
  The pressing need to retrofit and revitalise aging housing is pivotal for expanding capacity in the sector. Strategic investments in maintenance and refurbishment are critical to alleviating strain and future-proofing housing supply.
   
• Navigating Regulatory Complexities
  Emerging regulations, such as Gateway 2 & 3, pose challenges for fixed pricing and forward funding models. Proactively addressing risk allocation is vital to maintaining project stability and ensuring compliance.
   
• Encouraging Economic Trends
  With inflation stabilising, modest GDP growth, and potential interest rate cuts forecasted, the sector is poised for renewed growth by 2025. These factors signal a more optimistic horizon for housing investments.

Innovative firms like HUB and Amro Partners are leading the charge in repurposing underutilised spaces, but only a small fraction of office buildings—less than 5%—meet the standards for high-quality housing conversions. 

Key considerations include:

• Thorough Due Diligence: Feasibility studies for repurposing often demand 10 times the resources of new builds, as seen in case studies like the John Lewis Partnership's Waitrose store conversions.
• Community-Centric Planning: Projects should integrate features like pocket parks to foster community well-being and add social value.
• Sustainable Material Use: Retaining structural elements and reusing materials, such as FR plasterboard and glass, are vital for long-term sustainability.
• Breaking Down Barriers: Effective communication with local councils is crucial to overcoming resistance and unlocking potential in repurposing projects.

Providing sustainable, affordable housing for key workers requires targeted subsidies and should be recognised as an investment in essential infrastructure. This includes housing for a diverse range of roles that underpin urban functionality.

Meeting ambitious housing targets will depend on strong public-private partnerships and co-investment. Building trust between public bodies and private developers is essential for aligning priorities and unlocking opportunities, such as land releases from organisations like Transport for London (TfL).

Co-living remains an attractive option for a vibrant demographic averaging 30 years old. Operators like Folk Co-Living and ASSEAL highlight key factors for success:

• Modern Design & Green Proximity: Residents value sleek designs, access to community-oriented spaces, and nearby natural environments.
• Enhanced Amenities: Concierge services and ample storage are top priorities for residents.