Mar

Developer to build £1 billion ‘built for renters’ portfolio in London commuter towns

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London commuter towns are being targeted by property developer Strawberry Star Group to establish its new £1 billion build-to-rent (BTR) empire.

It has announced plans for a 163-apartment block in Harlow (pictured) due to start construction this year under its Star Living brand.

The firm also has planning permission for a 100-unit site in Gravesend, while an existing block in Luton – where 65% of the current 135 rental units were rented within the last three months of completion – will soon release 564 more.

Strawberry Star Group aims to have a £1 billion portfolio within London commuter towns by 2027 in areas close to transport hubs that have very few new-build rentals on offer, with a high proportion of young professionals, says chairman Santhosh Gowda (pictured).

“More choice and better supply will be a huge advantage to those now spending increasing time at home with flexible working here to stay, as BTR products are in a much better position to meet future needs and live-work trends,” he explains.

Renting journey

The Star Living site in Harlow will manage each renter’s journey from reservations to end of tenancy. Its studios, and one and two-bedroom apartments have Wi-Fi and furniture included and offer digital concierge, maintenance, parcel storage, flexible co-working, shared roof terrace, dry cleaning and housekeeping. Pets are also welcome.

Read more: Housing hotspots in 2022 – Where should you invest?

Gowda adds that 2022 is the year of BTR. “Last year saw a near 80% increase of capital invested into the sector compared to 2020, so it’s not unreasonable to suggest investment could triple as we edge towards 2023, having shown incredibly strong resilience during an unpredictable year for the UK economy.”

Investors ploughed £4.1 billion into build-to-rent last year, betting that purpose-built flats would provide more reliable returns than other sectors, according to global real estate advisor CBRE.

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