Later living specialist, Pegasus, part of the Lifestory Group, has announced a significant move towards becoming a sole Build to Rent (BtR) developer and operator.
Having successfully secured a significant investment loan facility with Barclays to support its growth as a wholly rental orientated developer and operator, Pegasus currently has a pipeline consisting of six new development sites across the country, creating over 300 new homes, due to start construction in early 2024. These new communities will be available solely for rent to the over 60s community. This is on top of its existing 26 later living communities which already offer rental as a tenure option.
Keen to fill a much-needed market gap for flexible living for older generations, Steve Bangs, Pegasus’ CEO, explains, “Our move to become the market leading Build to Rent developer and operator for seniors comes as a direct result of our customers selecting rental as their preferred option when choosing a Pegasus home. Renting is flexible, allowing our customers to be more agile when moving, as well as providing greater financial freedom and the ability to choose to move closer to family and friends. The need is clearly there, and we are responding to it.”
As the business makes this significant move towards Build to Rent for seniors, the scale of the market opportunity is clear. Recent analysis shows that those aged 55-64 years, alongside those aged 65 years and older, are the fastest growing segments of the private rented sector, increasing by 118% and 93% respectively since the turn of the last decade.
Knight Frank paints a similar picture, in which their research reveals the number of private rental properties for seniors is expected to increase by a huge 166% over the next five years in the UK, from almost 5,000 currently to more than 13,000, demonstrative of shifting attitudes towards homeownership in later years.
Pegasus already has a strong track record of rentals. At its Latheram House community in Cheltenham, 83% of current occupants are renters. Steve explains, “These are rental customers who have chosen to live in a thriving location, with the flexibility that independent living brings with it, by removing the burdens that may have come with their former homes in terms of management and maintenance. Whilst support is on hand if needed, the primary focus is to create a maintenance-free environment, enabling them to spend their time on the things they really love.”
Steve continues, “I am very excited to be leading the business through the transition to become the market leading Build to Rent developer and operator in the seniors market. As we prepare for this change, we will continue to offer both home purchase or renting as options across all 26 existing communities available to move into today, before moving to be exclusively Build to Rent.”
Lifestory has engaged Savills to source a like-minded strategic investment partner to assist in funding the future rental-only schemes and in turn becoming the pre-eminent developer and operator of mid-market seniors rental in the UK.
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