Investors are drawn to SFR units as they offer fewer void periods than those of urban apartments because the type of tenant they attract. Families who rent tend to be less transient and are often tied into a particular location because of schooling; hence the longer average tenancy periods.

Renting is becoming an increasing trend in the UK. In the mid 1990s less than 10% of UK homes were rented, now it is one in five. In Germany the ratio is 50-50, an indication of where the UK market could be heading with property ownership becoming more of a luxury asset rather than the cornerstone of British society.

Renting is of particular appeal to Millennials and Gen Z – and not just because of the affordability barriers in buying a home. Those in this demographic express a preference for renting because of the flexibility, less maintenance and better quality of rental property. They are also the same people who have emerged from the Covid pandemic more mindful of their housing options; they want homes that offer working from home, gardens and within commutable distances to urban centres. In this respect, SFR delivers.

Another major draw of SFR for both tenants and investors is the performance of these properties, specifically how cheap they are to run and whether they offer smart home management operating systems. With all rented properties requiring to perform to an EPC rating of C or above by 2028, new build SFR homes not only offer more energy-efficient living for tenants, but also a 100% compliant portfolio for landlords.