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Build to rent (BTR) is a term, mainly applied in the UK property market, for purpose built, institutionally owned and professionally managed residential property that is let on the open market rather than sold. [1] [2]
In October 2016, it was estimated that only some 8,000 units had been built with a further 15,000 units under construction. To date, the majority of completed projects have come forward in London and the major provincial cities such as Manchester, Liverpool and Sheffield. Construction is now underway in Birmingham and Leeds. The UK Government is reportedly encouraging the sector's growth. [3]
By September 2019 the number of units either built or in construction was reported to have increased to 35,000 [4] following large developments by a number of firms report in the media. [5] [6]
Build-to-rent is the most contemporary development in the private rented sector (PRS) and offers housing across the full spectrum of privately rented accommodation in terms of scale and service offering, often with affordable housing being integrated through discounted market rental homes.
Tenants in BTR properties typically pay an 11% premium over other properties in similar locations, according to one study. [7]
Build-to-rent developments are incorporating modern technologies and sustainable practices, such as energy-efficient systems and water conservation. One such example includes the integration of Tesla electric vehicles in some projects, like those by PropiCloud, which represent an innovative approach to enhancing urban living sustainably. [8]
Public housing, also known as social housing, refers to affordable housing provided in buildings that are usually owned and managed by local government, central government, nonprofit organizations or a combination thereof. The details, terminology, definitions of poverty, and other criteria for allocation may vary within different contexts, but the right to rent such a home is generally rationed through some form of means-testing or through administrative measures of housing needs. One can regard social housing as a potential remedy for housing inequality. Within the OECD, social housing represents an average of 7% of national housing stock (2020), ranging from ~34% in the Netherlands to less than 1% in Colombia.
In the United States, rent control refers to laws or ordinances that set price controls on the rent of residential housing to function as a price ceiling. More loosely, "rent control" describes several types of price control:
The Low-Income Housing Tax Credit (LIHTC) is a federal program in the United States that awards tax credits to housing developers in exchange for agreeing to reserve a certain fraction of rent-restricted units for lower-income households. The program was created under the Tax Reform Act of 1986 (TRA86) to incentivize the use of private equity in developing affordable housing. Projects developed with LIHTC credits must maintain a certain percentage of affordable units for a set period of time, typically 30 years, though there is a "qualified contract" process that can allow property owners to opt out after 15 years. The maximum rent that can be charged for designated affordable units is based on Area Median Income (AMI); over 50% of residents in LIHTC properties are considered Extremely Low-Income. Less than 10% of current credit expenditures are claimed by individual investors.
A housing cooperative, or housing co-op, is a legal entity which owns real estate consisting of one or more residential buildings. The entity is usually a cooperative or a corporation and constitutes a form of housing tenure. Typically housing cooperatives are owned by shareholders but in some cases they can be owned by a non-profit organization. They are a distinctive form of home ownership that have many characteristics that differ from other residential arrangements such as single family home ownership, condominiums and renting.
The Home Ownership Scheme (HOS) is a subsidised-sale public housing programme managed by the Hong Kong Housing Authority. It was instituted in the late 1970s as part of the government policy for public housing with two aims – to encourage better-off tenants of rental flats to vacate those flats for re-allocation to families in greater housing need; and also to provide an opportunity for home ownership to families unable to afford to buy in the private sector.
Buy-to-let is a British phrase referring to the purchase of a property specifically to let out, that is to rent it out. A buy-to-let mortgage is a mortgage loan specifically designed for this purpose. Buy-to-let properties are usually residential but the term also encompasses student property investments and hotel room investments.
Toronto Community Housing Corporation (TCHC) is a public housing agency in Toronto, Ontario. It is the largest social housing provider in Canada with over 58,000 units across 2,100 buildings and approximately 105,000 residents. It is the second-largest housing provider in North America, behind the New York City Housing Authority.
The private rented sector (PRS) is a classification of United Kingdom housing tenure as described by the Ministry of Housing, Communities and Local Government, a UK government department that monitors the national housing supply.
Great Northern Way Campus Ltd (GNWC) is a private limited company and educational enterprise located in Vancouver, British Columbia, Canada. It is the offspring of a consortium of four local academic institutions that has attracted significant public and private funding. The company is the trustee of the Great Northern Way Campus Trust, whose stated purpose is to create "a centre of convergence for arts and culture, digital media and the environment." At present, it manages a Master's degree in Digital Media, which admitted its first students in the Fall of 2007.
Related Companies, L.P. is an American real estate firm with headquarters in New York City, and with offices around the country including in West Palm Beach, Chicago, Boston, Los Angeles, San Francisco, as well as in London. Related developed the Hudson Yards Redevelopment Project, which comprises 28 acres (0.11 km2) in Manhattan's Chelsea and Hell's Kitchen neighborhoods. Related is also the largest private owner of affordable housing in the United States.
In the United States, subsidized housing is administered by federal, state and local agencies to provide subsidized rental assistance for low-income households. Public housing is priced much below the market rate, allowing people to live in more convenient locations rather than move away from the city in search of lower rents. In most federally-funded rental assistance programs, the tenants' monthly rent is set at 30% of their household income. Now increasingly provided in a variety of settings and formats, originally public housing in the U.S. consisted primarily of one or more concentrated blocks of low-rise and/or high-rise apartment buildings. These complexes are operated by state and local housing authorities which are authorized and funded by the United States Department of Housing and Urban Development (HUD). In 2020, there were one million public housing units. In 2022, about 5.2 million American households received some form of federal rental assistance.
Non-profit housing developers build affordable housing for individuals under-served by the private market. The non-profit housing sector is composed of community development corporations (CDC) and national and regional non-profit housing organizations whose mission is to provide for the needy, the elderly, working households, and others that the private housing market does not adequately serve. Of the total 4.6 million units in the social housing sector, non-profit developers have produced approximately 1.547 million units, or roughly one-third of the total stock. Since non-profit developers seldom have the financial resources or access to capital that for-profit entities do, they often use multiple layers of financing, usually from a variety of sources for both development and operation of these affordable housing units.
Rent regulation is a system of laws for the rental market of dwellings, with controversial effects on affordability of housing and tenancies. Generally, a system of rent regulation involves:
Public housing in the United Kingdom, also known as council housing or social housing, provided the majority of rented accommodation until 2011, when the number of households in private rental housing surpassed the number in social housing. Dwellings built for public or social housing use are built by or for local authorities and known as council houses. Since the 1980s non-profit housing associations became more important and subsequently the term "social housing" became widely used, as technically council housing only refers to housing owned by a local authority, though the terms are largely used interchangeably.
Housing in the United Kingdom represents the largest non-financial asset class in the UK; its overall net value passed the £5 trillion mark in 2014. Housing includes modern and traditional styles. About 30% of homes are owned outright by their occupants, and a further 40% are owner-occupied on a mortgage. About 18% are social housing of some kind, and the remaining 12% are privately rented.
Moda Living Limited is a Harrogate-based, family-owned developer and operator of purpose-built homes for rent across the United Kingdom.
Highpoint is a 142-metre, 46-storey, 458-apartment residential tower in Elephant and Castle in the London Borough of Southwark in London on the site of the London Park Hotel.
The Minto Group is a Canadian real estate company based in Ottawa, Ontario. It builds homes in Ottawa, Toronto, Calgary, and Florida, and manages multi-residential and commercial properties in Ontario and Alberta. As of 2018, Minto has built 85,000 new homes, and manages $2.9 billion in assets, including 13,000 multi-residential units and 2.7 million square feet of commercial space. The firm is one of Ottawa's largest residential landlords. Minto also has a publicly traded subsidiary, holding some of its multi-residential units, called Minto Apartment Real Estate Investment Trust. Some of Minto's joint-venture partners have been with Lasalle Investment Management, Greystar, and CPPIB.
Greystar Real Estate Partners is an international real estate developer and manager based in the United States. As of 2023, Greystar had over $76 billion in gross assets under management, and operated in 17 countries.
Affordable housing is housing that is deemed affordable to those with a median household income as rated by the national government or a local government by a recognized housing affordability index. A general rule is no more than 30% of gross monthly income should be spent on housing, to be considered affordable as the challenges of promoting affordable housing varies by location.
Tenants in a BTR development will typically pay an 11 per cent rental premium, according to analysis by JLL, a property consultancy.