Different Types of Rental Properties

It’s worth being aware of the different types of rental properties available when looking to rent your next home, and for landlords to be aware of the type of tenant they require to suit their property.

1.      Private Rental Sector

The private rented sector is accommodation provided by private landlords in the UK. Individual landlords or small-scale property management companies usually own these rental properties, which generally include Flats, family houses and rooms to rent.  

The English Housing Survey 2022-23 estimated that in England the PRS was providing 4,596,000 homes to renters!

As a tenant you will either deal with the landlord or managing agent.

2.      New Builds For Renters

The UK has seen a surge in purpose-built rental developments, often referred to as Build to Rent.

These homes are typically apartment blocks located in towns and cities and offer new, modern and often luxurious living spaces. These properties are curated with the modern renter in mind, often built to high specifications with modern fixtures and fittings and often come with enhanced security features, this is because they want to attract and retain renters. Build to Rent (BtR) homes are specifically designed for renting rather than selling. As a result, they focus on long-term occupancy and renter satisfaction.

3.      Single Family Housing

Single-family housing is a term used to describe single-family rental – part of the build-to-rent family. The difference is that provides houses for rent as opposed to apartments, with less of the enhanced features you find in the BtR apartment blocks. In addition, you’re more likely to find SFH in suburban areas as opposed to more urban locations. Renters of SFH properties are less likely to move as often as those who rent in BtR apartments. This is due to more family-related commitments like school and family connections.

4.      Houses of Multiple Occupation (HMO)

They offer privately rented accommodation to three or more people who typically don’t know each other and who share a kitchen and (in some cases) bathroom.

HMO’s must be licensed by the local authority and are required to meet certain conditions. This is how the government ensures accommodation is safe and suitable for the tenants.

Here are some key things to keep in mind:

·         If you’ve got a reduced budget HMO’s can be more affordable as you’re not having to rent an entire flat or house.

·         You’ll need to be comfortable sharing your living space with a mix of people you don’t yet know, and they may come and go more frequently.

·         Some HMO’s include council tax and utilities in the rental which can help with budgeting.

·         They often come furnished.

·         HMO’s are subject to specific regulations and safety standards, ensuring a safe and comfortable living environment.

5.      Co Living Rental Property

Co-living is a modern form of communal living where you have a private bedroom but share common areas like kitchens, living rooms, and sometimes bathrooms. The ethos behind co-living is to create a sense of community and social interaction among tenants. They are therefore largely operated by institutional, rather than private landlords.

Here are some key things to keep in mind about co-living spaces:

In some cases, they may be more affordable, as the cost is shared among the renters. However, when compared to traditional shared housing options they can also work out more expensive.

Rent in co-living spaces can include utilities, Wi-Fi and some cleaning.

Some have gyms, lounges, event spaces, and coworking areas.

They are mainly found in central urban areas.

Which type of rental property is best for you?

This will largely be dictated by the location you’re looking to rent in and the availability of each of the above. But whatever route you take be sure to understand the type of tenancy agreement in use as they can vary.