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4th March 2022
2 minutes

New-build properties command an average 23% rental premium

According to the latest research by property platform, Unlatch, new-build properties command rental premiums of up to 41% higher than the properties already on the market, as the build-to-rent market boom continues to influence the buy-to-let industry.

After analysing the latest market data on new-build rental premiums and their yields, and how this differs across the country, Unlatch have recently published that the results suggest a new-build investment is a much better option for a long-term investor since the new-build property market is thriving – primarily due to the evolution of the build-to-rent sector, which offers residents a far higher quality rental experience with a focus on their everyday lives, amenities, and quality of life.

Since the build-to-rent model provides a much more superior quality across the development, it is anticipated that the apartments within the build-to-rent sector will come at a higher premium than their traditional counterparts when coming to the rental market. This premium increase has been confirmed by Unlatch’s research, with new-build properties coming to the rental market with an average 23% higher rental value than the properties already on the market.

Whilst the rental premium across new-build developments is high across the country, the Northwest is currently home to the highest average new-build rental yield of 4.4% - significantly higher than the national average of 3.7%.

Lee Martin, Head of UK for Unlatch, said: “New-build homes … are fast becoming the investment route of choice and this trend is undoubtedly being driven by the Build-to-Rent boom and the increasing demand from tenants for better rental homes with a lifestyle focus. Of course, there are a wealth of additional benefits that new homes offer investors when it comes to boosting their profit margins. Running costs are considerably lower as new builds are substantially more energy-efficient and the better level of build quality and compliance means that maintenance costs are also reduced.”

Lee Martin also went on to comment on the built-to-rent market, stating that it “offers the opportunity to invest in the rental market but with a more hands-off approach, which can save investors a considerable amount of personal time and money.”

To learn more about our new-build developments and our flagship development, Ancoats Gardens, which is now 96% sold out with its last units remaining, get in touch with our expert team of property consultants today.

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