Saxbury creates innovative build-to-rent model for developers entering the rental market

Developers can now create a solid income structure without the risks or responsibilities of becoming a landlord, thanks to uniquely competitive finance options

Build-to-Rent (BTR) is now a common solution for developers navigating a more challenging marketplace. Individual sales may be slow and hard-won while block buying offers are often untenably low. As a more secure, flexible and pragmatic alternative, BTR is a solid solution. The current climate is one of depressed property values and interest rates of 12% – 14%. However, Saxbury is able to offer interest rates of around half this amount on developer refinance options.

BTR is not an interim solution. The transient nature of modern metropolitan lifestyles has led to a burgeoning rental market which is only set to grow. This is fertile ground for savvy developers. Large funds, such as Aviva, DTZ and Investec, have also backed BTR in recent years. 

Historically, developers have been resistant towards becoming landlords. By opting for a BTR master lease agreement, they are empowered to de-risk their investment, outsource the legwork and receive their net income on day one. Professional operators, such as corporate housing companies and serviced apartment operators, which are often asset-light businesses, are lining up to sign long-term lease agreements.

“Whether a client is looking for a master lease agreement or a management contract, Saxbury has the industry network and insider know-how to pair discerning developers with trusted occupiers”

- Ben Davis, Co-Founder

From greatly reduced rental voids and management costs to a better net position compared to typical Assured Shorthold Tenancy (AST) income, this is a great way for second and third-tier developers to capitalise on rental demand and build equity in their property portfolio.

Alternatively, an occupational solution such as a management contract with a third-party operator is the preferred route for those willing to put skin in the game in exchange for better returns. “Whether a client is looking for a master lease agreement or a management contract, Saxbury has the industry network and insider know-how to pair discerning developers with trusted occupiers,” explains Saxbury co-founder Ben Davis. “With our extremely competitive developer refinance options, we offer a complete build-to-rent solution allowing shrewd developers to outsource both risk and responsibility to ultimately create a long-term passive income structure.”

Owing to a forensic understanding of the industry and time-honoured partnerships, Saxbury has successfully negotiated numerous BTR master lease agreements and management contracts. Now is an ideal time to move away from the stagnant build-to-sell marketplace and invest in the booming rental sector.

Get in touch to find out more about our innovative build-to-rent model.