Research from Manor Interiors, the expert in build-to-rent furnishing solutions, has revealed that build to rent developers can save £45 million across the current industry pipeline by procuring specialist furniture packages instead of buying each piece of furniture individually.
The build to rent industry is destined to become the leading new build sector over the coming years. Developers are excited for the handsome profits available from being both the building owner and landlord, and tenants are excited for the sophistication, maturity, and autonomy offered by build to rent developments.
When furnishing build to rent homes, developers have two choices. The first choice is to source and purchase pieces of furniture individually from consumer retailers or to opt for mass produced items. The second is to opt for furniture procurement packages from a specialist provider.
By using traditional methods to furnish a standard one-bed build to rent home, it costs an estimated sum of £3,750. To furnish the same home with a specialist furniture package, it costs just £2,958, a saving of 21%.
To furnish a two-bed build to rent home, it costs around £5,500 when buying each piece individually while with a procured furniture package, it costs just £4,431; a saving of 19%. And to furnish a three-bed home will usually cost £7,250 but with a package costs just £5,658; a saving of 22%.
Overall, this means the average saving gained by using a procured furniture package is 21%, or £1,151, per build to rent home.
As of Q2 2021, there are 39,524 build to rent units currently under construction. With an average saving of £1,151 per home, the industry could save a total of £45.5 million by using furniture procurement.
CEO of Manor Interiors, Farhan Malik, commented:
“With the build to rent movement gaining serious momentum and accounting for more and more of the UK new build market, developers are quickly getting involved, hoping to make the most of this incredible opportunity.
“It’s important for developers to appreciate that one of things people love about buy to rent is the step up in quality it promises over standard private renting. The shabby, shoddy, lowest acceptable standard of furniture that renting has long been associated with will not be accepted by build to rent tenants so developers need to procure a higher standard of furniture to create a much more luxurious feel.
“Doing this can be expensive, but with furniture procurement packages, much of this cost can be mitigated. And if and when furniture needs replacing or repairing, specialist providers like Manor Interiors can solve the issues efficiently and affordably, thus keeping costs low and customers happy well into the future.”