L&G lays into agents as its first build-to-rent development opens
Company says renters have been "at mercy" of high rents and poor management "for too long".
Legal and General (L&G) has opened its first build-to-rent (BTR) scheme in the UK at a site overlooking the River Irwell in Salford, Manchester (pictured, right) where tenants will pay no moving in fees and a significantly-reduced deposit compared to traditional lets.
The insurer, which is one of the UK’s best-known financial firms, set itself directly in competition with traditional letting agents and property managers at the launch.
“For too long renters have found themselves at the mercy of expensive moving fees, unresponsive managers, and private landlords who often want to minimise upkeep costs and maximise rents,” says Dan Batterton, BTR Fund Manager at LGIM Real Assets (pictured, left).
The Salford BTR development, called the Slate Yard, officially opened today and the first tenants are due to move in later this week, where L&G claims they will enjoy a lifestyle that many home owners would struggle to achieve.
Build-to-rent
As well as a fee-free move into the property and a low deposit, the building is served by a 24-7 on-site maintenance and management team, has free WIFI and free membership of a car club.
L&G says these benefits will save tenants approximately £150 a month. Electricity and heating for the building are provided via solar panels on the roof, which L&G says will keep utility bills low.
Other benefits include a resident’s lounge and work space with river views where free coffee is available on tap. The first 90 apartments of the development have been released, which when finished will total 225 properties.
“At the Slate Yard we have been able to offer significantly reduced living costs because of economies of scale, which a private landlord just wouldn’t be able to do,” says Dan Batterton.
“We have families, pet owners, empty nesters and young couples who have already reserved homes and are moving in this week, which is testament to how this new level of service and offering allows for all types of residents needs and gives them choice.
“We want our customers to feel like they are in their home, not staying in someone else’s.”
L&G has amassed two funds worth together £1.6 billion for its BTR ambitions and this is the first project to come on stream with others in Bristol, Bath, Leeds and London, two of which – Bristol and London – aren’t far behind Manchester.
