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There are currently more than 20 million home workers in the UK and this number continues to grow. People working from home are usually willing to increase their budget for quality accommodation. This is because it is their home and workplace. As a result, the demand for new-built accommodation is high. For residents, newly built apartments offer comfortable living, plenty of space, and top-quality facilities.
Buy-to-let investors looking for new opportunities are finding high yields in areas where home working has increased. For example, in the Northwest, Midlands and Yorkshire areas. This is where home working has increased by an average of 15% between 2019 and 2022, according to the National Office of Statistics. However, investors are trying to pinpoint exactly what people working from home are looking for.
Find out more about why the demand is high for new build property, here.
Arguably the most important aspect for tenants who work from home is fast internet speeds. Internet connection is vital to their working culture and of additional value during their leisure time. Tenants always look to acquire a secure connection to WiFi to make video calls, send emails, and upload work to shared servers.
With new-build apartments in large UK cities, tenants will often be able to benefit from fibre optic connections. If not, they can still benefit from a stable broadband connection. When looking to draw interest from home-working tenants to a rental property, it is important to explore what internet options are available in the area.
Cost of Living
As the cost of living has risen, Green Investing has increased in popularity. Taking advantage of newer appliances, technology, and heating options. This has huge benefits for both landlords and tenants. Lower utility bills are a bonus for tenants who are looking to save money. For landlords, maintenance and repairs should be inexpensive as often new appliances are under warranty and far more reliable.
Investing in a new-build property could work out as a cost-effective solution to this. This is because they are usually equipped with the latest appliances and technology, rather than the investor having to put thousands of pounds into bringing an older property up to date. Tenants who work from home could save hundreds on their utilities as a result, so are typically happy to pay rental prices higher than those found in the surrounding area.
Read more about the EPC regulation changes coming into effect as soon as 2025, here.
Quality of Life
When trying to attract home workers to rent a rental property, local amenities are going to be a huge pull to the area. For example, coffee shops, bars and shops within walking distance are a huge draw for young professionals. These amenities improve the quality of life for residents and are a huge factor when looking to rent a property. Happy tenants are more likely to have longer tenancy periods, meaning the property will not be vacant as often and tenants who live there are retained far easier.
New-build apartments are usually shortly followed by great amenities. Typically, businesses that see growth in an area want to provide services to residents of that area, benefiting both the business and the residents. Once amenities appear in the area, the property investors in the local area will benefit from capital growth, as the location becomes far more attractive to new buyers.
Find out why local infrastructure can contribute to capital growth, here.
Community is hugely important to home workers, as they often would like to replace the face-to-face element they miss in their working life. Areas such as local parks and building communal courtyards make for fantastic community building. Strong communities are important as it allows residents to feel safer, more comfortable and attract high-quality new tenants.
Developing areas usually make huge investments in building community facilities. This is to improve the residents’ quality of life and bring more stability to the area, with a higher retention rate. Communities will often stick together, meaning once an area has built a strong community it makes it a far more difficult decision when deciding their next steps once a tenancy ends.
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