Community can have a large impact on a persons wellbeing and an outright lack of it, can be detrimental. Community influences every aspect of our lives, because having a sense of community makes us feel safe. It unites us and allows us to feel connected with others. Its essence was most recognised this year, due to COVID-19. Restrictions limited social gatherings and enforced physical distancing. 2020 has displayed just how important it is for us as social beings to feel a part of something. To feel envolved with our local community.
We have recently reviewed the benefits gained by developments that establish a community among tenants. But, what are the advantages of adding value to the wider local community? As John Badman succinctly put, in his contribution to our recent interview series, “you need to know your neighbourhood”.
Advantages of Adding Value to the Wider Local Community
Establishes the Build to Rent Name and Brand with Value
For any Build to Rent, associating its name and brand with value-adding, confers benefits and trust in the company’s reputation. To achieve a good reputation, it’s important to be investing in the local community where a development operates.
Local community contribution is one of the factors considered in granting the planning application. Developer’s with a reputation for boosting the local community’s economy and job opportunities, are more likely to gain local support. It would no longer be a case of “not in my backyard” and instead, the usual strenuous process of planning and approval could be made easier.
For instance, Brent Council entered a partnership with Quintain in the creation of Wembley Park which consists of several BTR’s. This is to help boost commerce and increase economic opportunities for the local community. The CEO of Quintain, Angus Dodd stated “We see this development as a community-led project… We want all London residents from all walks of life to be welcome here.”
Quintain has also set quotas for local residents in the construction and running of the Wembley Park development. With 40% of contractors working on the development from the local areas. As well as, the hiring of local workers to fill positions like cleaning, security, store management and construction. Further, Quintain has provided apprenticeships that empower members of the local community to gain work experience and access to employment.
Tenant Experience and Pride
Tenant experience is an important aspect for all Build to Rent developments. Tenants tend to stay longer in homes that enhance their sense of community, within the development and the wider local community. Being part of a community makes us feel as though we’re a part of something bigger than ourselves. Through COVID, there has been an overwhelming need for the UK to feel connected. From clapping for the NHS, to helping an elderly neighbour with their shopping. Naturally, people need to feel like they are doing their part to better society, especially in times of uncertainty.
Grow Your Local Economy – Increase Rental Values
The more value is added to the local economy, the more valuable the property becomes. In turn, the rental value increases. As obvious as this may seem, it is often an overlooked aspect of property development that the more a development brings to a local community, the more valuable that community becomes. While it’s not encouraged to do good deeds purely for financial gain, it’s a clear win-win.
Areas like Shoreditch and Brixton have seen a huge rise in the value of the area over the last decade. This is due to the edgy and arty culture of the area being embraced and built upon. Think not what your community can do for you, but what you can do for your community!
Case Studies
Moda Living
Moda Living are one of UK’s leading owner-operators of private, BTR developments in the sector. They prides themselves on their high-quality neighbourhoods, providing the best places to live, play and work.
Adding value to communities is a major part of their culture. As James Blakey, planning director at Moda put “As an operator first and foremost, we’re looking to invest and grow in the communities we seek to create”.
Moda’s community agreement with Brighton & Hove is one of the biggest contributions by a private company to public amenity. The section 106 community legal agreement is valued at over £10 million, to be invested locally in education, infrastructure, public arts and aiding the community.
Sigma Capital Group
The third biggest investor in the UK Build to Rent scene. Sigma Capital Group is a leading provider, focused on creating new communities through well located and quality family housing.
Their core philosophy is the creation of sustainable communities, for all members of society. As part of their CSR every year, Sigma looks to support local employment, schools, clubs and charities.
Conclusion
Build to Rent developments are regarded as a 25-year investment when being modelled and planned. The opportunity to improve the local area within that period should be considered, as the relationship between the BTR provider and the local community ought to be a symbiotic one.
The Build to Rent Philosophy is one centred around fostering a community – let’s start expanding our community!
Subscribe
Every Friday we send an email with that weeks published posts. Subscribe to our weekly newsletter to make sure you don’t miss a thing.