
The Community of the Future
According to Savills, the second quarter of 2019 saw a massive 34% increase from 2018 in the Build To Rent (BTR) sector, with 32,000 homes built specifically for rent in the UK and more than double that in planning. People are starting to see greater value in BTR.
It is true that developers have always built properties to rent them out, but under the BTR schemes, a new sense of community is emerging. The BTR sector is not just a new acronym for the usual leasing sector, at its core there is a growing tech revolution utilising the latest IoT gadgets to help create these smart homes and well connected communities. The sector is mainly booming due to government backing, looser planning permissions and the variety of financing options available.
Looking at the communities that are emerging, one can imagine a future where developments will be geared towards communities that share similar demands and needs; communities for millennial families, retired individuals or newly arrived expats.
Now imagine the impact technology can bring to each of these communities. Millennials for instance, care about flexibility and instant information, and IoT gadgets linked to a smartphone with wifi access can help an individual control and monitor their home remotely from anywhere in the globe. This is appealing to a generation that is constantly on the move and rarely at home. Knight Frank found that over a quarter of renters in their early twenties, which it refers to as iGens, would consider paying more for tech-enabled properties. These renters grew up around tech, their smartwatches are a (literal) extension of their arms and they get their morning news from twitter, not the local newsagents. This trend towards tech enabled housing will only grow. Who knows? The next generation might grow up with voice activated dummies.
BTR retirement communities may benefit from tech enabled tools catered to connectivity and health, allowing tenants to prioritise and monitor their health and wellbeing while also being constantly connected to their loved ones. The stigma sometimes attached to retirement homes may also no longer be a problem. Instead, friendly communities of older renters who have decided to downsize after their children have flown the nest is possible. A new report, ‘Urban Being — The Future of City Living’, conducted by FTI Consulting, shows growing support for renting after retirement in large UK cities, plus Berlin, Amsterdam and Paris.
BTR is not about building a stack of flats and renting them, it is about the technology behind the developments and the management of these homes. It won’t be long until we see homes loaded with sensors that allow an integrated rental experience in line with all of the IoT gadgets. The integration of hardware such as the Orro smart switch (reduces lighting waste) or Google Nest (allows people to manage and observe their homes remotely) will be the norm rather than the exception. Switchee, a smart thermostat designed specifically for the affordable housing sector, allows for a scheduled heating routine. It can even control the temperature of your water. This can be part and parcel to the offering of BTR homes, a slice of the future with a central hub from which a tenant can maintain their home, even remotely.
Mobile applications and online platforms can bring the power of social media to the neighbourhood level, enabling communication between a building operator and tenants. Apps like Meetup have shown us how strangers can use technology to find like-minded individuals. This can be replicated within the BTR community, which is already self-selecting. Big players like Amazon, Samsung and Siemens are all moving into this space. Others, like Hive Homes, are linking with partners in order to allow them to offer comprehensive systems that leave no stone unturned.
Data will be key to the process- gathered both from the sensors and a real-time feedback mechanism, which could be viewed both by current and prospective tenants, whilst also allowing management to know what needs to be improved. Services like rentoo.co.uk, which verifies properties for quality, safety and comfort and includes a list of the amenities on offer, are already moving in this direction. Homeviews.com, which enables reviews on buildings, can easily be a very useful tool for the BTR community to rate and review their experience. This will lead to tenant empowerment, as the desire for good reviews will inevitably keep landlords on their toes. From communal events to laundry services to storage facilities, all will be provided for within a single package. Services and amenities will have the feel of a serviced apartment, or even a hotel. There are already some forward-thinking businesses that are trying to capture this market. Spaceflow.io is a great example of such a platform, their business provides developers and agents the ability to white-label their software to manage the space and community and link with hardware and sensors that can be installed in the property.
Residents can feel equal as a community of renters and will have aligned interests, and specific services that they will require. These communities may drive a certain value system with regards to the way we live together. Big cities are desperate for a fairer and more transparent form of renting, especially for younger people, who want the best rental experience they can get find during the long and uncertain wait to get on the property ladder. The tech is here and the sector is catching up. BTR has arrived, and real estate developers and investors should take note if they don’t want to be buried in the rubble of yesterday.

