In this column for Estates Gazette, our co-founder and Managing Director Henry Morris shares his thoughts on the future of build-to-rent (BTR).
He comments on how the sector is evolving and is having a significant and positive impact on the housing mix of our cities and major towns. As the success of BTR becomes evident, housebuilders are increasingly partnering with major operators to build product specifically for the rental market. For investors such as MGT, the appeal is obvious – we can buy whole developments from housebuilders for conversion into rental communities. We view this as an opportunity to secure significant operational product at scale. Housebuilders stand to benefit from forward-funding and development capital, in a cooling for-sale market.
In the article Henry also talks about how MGT has identified higher value areas such as the Thames Valley and Cambridge-Oxford corridor as locations where the shortage of good quality suburban rental housing is particularly acute, representing a prime opportunity for BTR.
MGT’s confidence in the future of BTR is reflected in Henry’s comment:
“The stars are aligning for a second, suburban BTR boom, as investors partner with housebuilders to bring this new type of rental product to market.”
You can read Henry’s column here.