Market insight Running a build to rent home in numbers
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Running a build to rent home in numbers

The emergence of build to rent (BTR) over the last five years means the sector offers some of the newest and most energy efficient homes in the country. Being efficient to run means they are also kinder to tenants’ pockets. If every household who currently rents privately was to move into an equally sized BTR home, they would save a total of £860 million annually on their utility bills (gas and electricity only) based on 2021 prices. This would equate to an average saving of just under £200 per household each year.

These savings are a product of higher EPC ratings courtesy of newer homes meeting tougher insulation standards. Our analysis shows that 87% of BTR homes let so far this year achieved an A-C EPC rating, compared to around 65% of privately rented flats (while the fi gure for privately rented houses is below 45%). Consequently, the average utility bill saving on a similar sized property ranges from 11-22% annually, with larger homes saving proportionately more. The rise in the energy bill cap in April 2022 will increase both the cash and percentage savings even further, as will another potential rise to the cap in October.

So once all the essential bills (gas, electricity, water and council tax) are paid for, it leaves the average BTR tenant £366 per year, or around £1 per day, better off than the average private tenant renting a similar sized home. This is likely to develop into a key selling point for the BTR sector.

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