Build-to-rent investors target Birmingham as migration from Londoners soars
Birmingham’s tallest residential tower is not being built by a housebuilder, but by a build-to-rent developer as internal migration drives more young professionals out of London.
Data from the Office of National Statistics shows that people are moving out of London at the highest rate since records began in 2011, with Birmingham being a top destination for many.
Johnny Caddick, managing director at Moda, which is creating £2bn portfolio of city centre rental apartments across England and Scotland, said: “It’s not surprising that record numbers of people are moving to Birmingham. It’s now a global city with the amenities and international connections consumers and businesses demand. Investment around HS2 and the commitment from firms like HSBC has underscored investor confidence in Birmingham and this is why investors are piling in.
“Birmingham’s economy can only grow if it attracts – and retains – the brightest talent and the city council knows that doing this requires high-quality, city centre housing. Build to rent is well suited to the city as it supports high density development and recognises that many workers value the time saving and hassle-free way of life companies like Moda plan to offer.”
Moda’s £183m 2one2 Broad scheme spans 42 floors and includes a host of amenities, including a rooftop running track, virtual sports simulators and dedicated wellness zones. These are designed to appeal to young professionals and families alike, with Moda also promising long-term yet flexible tenancies of three to five years.
Build-to-rent has, until-now, largely been confined to London with clusters of apartments run by whole companies rather than individuals. The sector is growing fast, replicating how the U.S. property market – where renting is far more acceptable – focuses on tying up institutional cash – insurer and pension fund money - in purpose-built private rental buildings.
Moda says that it why it is creating more than £2bn of build-to-rent developments across major UK cities such as Birmingham, Edinburgh, Glasgow, Liverpool, Leeds and Manchester.
Moda’s first scheme, Angel Gardens in Manchester, a 34-storey, 466-home tower, is set to open next year as part of the NOMA neighbourhood.