May

MARKET: Property giant reveals move into build to rent with 1,200 homes

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Build-to-rent (BTR) competition with landlords is to be ratcheted up soon after the Harworth Group revealed it is looking for developer partners to build 1,200 rental homes at 10 of its development sites across the UK.

The land and property regeneration firm wants to create a build-to-rent portfolio of single family, two- and three-bedroom houses in Yorkshire, the Midlands and the North West, which would all be ready to rent in the next three years.

The move reflects the steady growth of BTR, with more than 140,000 homes under construction or in planning at the start of the year, while investors ploughed £4.1 billion into the sector in 2021, according to global real estate advisor CBRE.

Harworth Group’s sites are in popular locations near major conurbations with good local amenities and transport connections.

The new rental properties will be set in extensive green space offering recreational facilities and will sit alongside the firm’s build-to-sell (BTS) products already developed by housebuilders at its residential sites.

The company says these sites lend themselves to the BTR market, and that by offering both BTR and BTS, it can speed up delivery; with BTS, sales have to be phased over a number of years to take account of local absorption rates of housing stock.

Read more: What does BTR mean for buy-to-let?

As both styles are aimed at different markets, they can be delivered simultaneously.

It also supports the company’s ambition to double its residential plot sales to around 2,000 plots a year, according to Lynda Shillaw (pictured), chief executive of Harworth.

She says: “Project Spur is part of our strategy to accelerate the development of our residential sites, providing a range of homes for local people and enabling diverse communities. We look forward to working with partners aligned to our purpose and ambitions, to continue delivering places where people want to live and work.”

Pic credit: Harwarth Group, showing its Rotherham development.

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