Later living specialist, Pegasus, part of the Lifestory Group, has announced a significant move towards becoming a sole Build-to-Rent developer and operator to fill a much-need gap for flexible living in the market.
Having successfully secured a significant investment loan facility with Barclays to support its ambitious growth, Pegasus currently has six new developments in the pipeline across the country, creating over 300 new homes, with construction due to start in early 2024. These new communities will be available solely for rent to the over 60s community. This is on top of its existing 26 later living communities, comprising 2,500 homes with a value of over £1.5billion, which already offer rental as a tenure option.
Steve Bangs, CEO of Pegasus, said: “Our move to become the market-leading BTR developer and operator for seniors comes as a direct result of our customers selecting rental as their preferred option when choosing a Pegasus home. Renting is flexible, allowing our customers to be more agile when moving, as well as providing greater financial freedom and the ability to choose to move closer to family and friends. The need is clearly there, and we are responding to it.”
Recent analysis shows that those aged 55-64 years, alongside those aged 65 years and older, are the fastest growing segments of the private rented sector, increasing by 118% and 93% respectively since the turn of the last decade.
Independent real estate agency, Knight Frank, paints a similar picture, in which their research reveals the number of private rental properties for seniors is expected to increase by 166% over the next five years in the UK, from almost 5,000 currently to more than 13,000, demonstrating a shift in attitudes towards homeownership in later years.
At Pegasus’ Latheram House community in Cheltenham, 83% of current occupants are renters. Steve Bangs explains: “These are rental customers who have chosen to live in a thriving location, with the flexibility that independent living brings with it, by removing the burdens that may have come with their former homes in terms of management and maintenance. Whilst support is on hand if needed, the primary focus is to create a maintenance-free environment, enabling them to spend their time on the things they really love.”
“I am very excited to be leading the business through the transition to become the market-leading BTR developer and operator in the seniors market. As we prepare for this change, we will continue to offer both purchase and renting as options across all 26 existing communities available to move into today, before moving to be exclusively BTR.”
Lifestory has engaged Savills to source a like-minded strategic investment partner to assist in funding the future rental-only schemes and in turn becoming the pre-eminent developer and operator of mid-market rental for seniors in the UK.
