Institutional investment in the UK’s build-to-rent (BTR) sector is soaring, driving demand for turnkey solutions, Louise Walters, Commercial Director, Designer Contracts explains
The surge in corporate investment in the UK’s build-to-rent and buy-to-let housing market is creating new opportunities for suppliers nimble enough to stay ahead of the curve. Louise Walters, commercial director for Designer Contracts, the UK’s largest flooring contractor, explains why a one-stop-shop service is now more important than ever. And what it takes to deliver that.
The phenomenal rise of institutional investors in the buy-to-rent (BTR) sector has opened a world of new opportunities for contract suppliers savvy and adept enough to meet the needs of a new and growing market.
The figures speak for themselves. According to KnightFrank.com institutional investment in the UK’s BTR sector has seen significant growth. In 2024 it surpassed £5 billion for the first time, marking the fifth consecutive record year and an 11% increase from 2023.
Fuelled by the demand for rental properties and the potential for stable returns, government policy has also played a role. While tax and regulatory changes have made the broader buy-to-let (BTL) market less attractive for small landlords, they have paved the way for larger institutional investors. The rise of purpose-built rental housing has further incentivised financial institutions to enter the market.
Moreover, pension funds, insurers, and private equity firms see BTR investments as a way to diversify their portfolios. Real estate provides tangible, appreciating assets that generate steady income, aligning with long-term investment strategies.
It all adds up to a growing need for turnkey solutions. As one of the more agile suppliers to the new build sector, offering not just flooring solutions but furniture and lighting packs and made-to-measure blinds and curtains, this evolving market is a further opportunity for suppliers like ourselves to further develop partnerships with the new build sector.
More adept, customer-oriented businesses recognise that a one-stop-shop offer is a win-win solution for the developer who simply wants to sell its inventory – and the investor who wants a fuss-free financial transaction.
Also important to servicing this emerging buyer sector is having depth and breadth of immediately available stock. The BTR market is both swift and demanding: property investors need to conclude both the sale and interior fit out in rapid order so they can make the soonest possible return on their investment. It’s one of the reasons we carry £3.5 million worth of stock at our central distribution centre – we understand the urgency involved.
The one stop shop
As well as an unrivalled portfolio of carpet and flooring solutions, Designer Contracts, offers a carefully curated choice of furniture and lighting packs for the turnkey solutions market.
The company has on trend and competitively priced furniture packs with two clear offers: Solution, a pack designed to meet the requirements and expectations of landlords, first-time-buyers, student accommodation and investors; and Elevate, a developer pack offering a more aspirational range of furniture. Its lighting pack, Glow offers various lighting solutions including a range of ceiling fixed lights and less expensive shades that are an ideal option for hiding bulbs.
Solution brings a touch of Scandinavian simplicity to entry level rentals with a modern inventory of lounge, dining, bedroom and home office furniture along with linens and basic kitchen equipment included in the packs.
Elevate takes things to a more stylish level with pieces designed to appeal to developers furnishing higher market, aspirational accommodation. It also covers a comprehensive range of bedding and kitchen equipment including an ironing board, 12-piece dinner service and selection of wine and drinks glasses.
Offering spot on fashion choices for lighting around the home, Glow meets every need from spotlights to funky cluster options, pendants, light bars and crystal-style clusters.
Said Louise: “The idea is to provide landlords and investors with easy solutions to furnishing rental properties across the market, whatever their requirements and size of property. We’ve tried to think of everything.”
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