Gordon More, the managing director of LIV Consult, a consultancy specializing in build-to-rent (BTR) developments, believes that there should be more consolidation in the BTR market. According to More, the BTR sector is currently quite fragmented, with a large number of small players operating independently. He argues that consolidation could bring benefits such as greater scale, increased efficiency, and improved professionalism within the industry.
More points out that the BTR market is still relatively young in the UK compared to other countries such as the US and Germany, where consolidation has already taken place to a greater extent. He believes that the UK market is ripe for consolidation, with opportunities for larger companies to acquire smaller players and create economies of scale. This could lead to improved operational efficiencies, better access to financing, and ultimately a more mature and sustainable BTR sector.
More also highlights the importance of professionalism in the BTR market, pointing out that as the sector continues to grow, there is a need for more experienced and skilled professionals to manage BTR developments effectively. Consolidation could help to improve standards within the industry by creating larger companies with the resources to invest in training and development for their staff.
Despite the potential benefits of consolidation, More acknowledges that there are also challenges that need to be overcome. One of the main obstacles is the diversity of BTR developments in terms of location, size, and target market. This can make it difficult for larger companies to acquire smaller players, as the two may not have compatible portfolios or business models.
In addition, there is also the issue of competition within the BTR market. More notes that as the sector becomes more crowded, there is a risk that larger companies could use their size and resources to dominate the market, potentially stifling innovation and limiting choice for consumers. This could have negative consequences for the overall growth and development of the BTR sector in the long term.
Despite these challenges, More remains optimistic about the future of the BTR market in the UK. He believes that consolidation is a natural progression for the industry as it continues to mature and evolve. By creating larger, more professional companies that can compete on a national and even international level, the BTR sector could unlock its full potential and become a key player in the UK housing market.
Overall, More’s call for more consolidation in the BTR market is a timely reminder of the need for the sector to evolve in order to meet the growing demand for high-quality rental accommodation in the UK. As larger companies seek to expand their reach and create more sustainable business models, they will be able to provide better service to tenants, attract more investment, and ultimately drive the growth of the BTR sector as a whole.
