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COSTS | BUILD TO RENT Cost model Build-to-rent housing With the demand for build-to-rent accommodation accelerating, Aecoms Garry Burdett outlines a cost model for a typical project W ith the historic, continued rise in property values and the growing affordability gap between wages and property prices, there is a real and increasing demand for an alternative approach to UK housing, as evidenced in the build-to-rent (BTR) sector. The target market for a vast majority of these BTR schemes is the younger generation and boomers, who are attracted by the offering and flexibility of the BTR market compared with the alternative available from individual landlords in apartment blocks, often providing limited facilities and a lack of community. End users A number of cities outside of London have a relatively young population. A demographic analysis of Birminghams city centre, for example, shows that 75% of the population is below 35 years old. For a city such as Birmingham, this younger population is made up of students who remain and work within the area after finishing college and university, and career starters who are establishing themselves within their chosen industry. The BTR end users are very different from the traditional users of private developments. There is a demand for tech-enabled apartments equipped with high-speed broadband, and keyless entry via smartphones. The onus is on flexibility, onsite facilities (bookable by app) and move-in-ready homes. The BTR developer must focus and understand what this means in terms of specification and capital cost impacts; there needs to be a forward assessment in terms of whole life-cycle costs, with a balancing act between capital costs and costs in use. While the returns for a private for-sale development will yield significant early returns, the longevity of the returns over a 30-year period for a BTR development mean they can be substantial. Community and connectivity are key in attracting the BTR user. In terms of community, this relates to a real sense that the development hosts a similar demographic to them. Often, postgraduate BTR users will have lived in Shell and core Quantity Unit /unit Allowance for sanitary ware to concierge/amenities/ cleaners sinks 21,000 m2 0.82 17,136 Disposal rainwater/balcony/foul drainage 21,000 m2 32.32 678,748 21,000 m2 31.82 668,304 21,000 m2 21.59 453,304 21,000 m2 38.20 802,193 21,000 m2 23.53 494,088 21,000 m2 72.67 1,526,129 21,000 m2 37.55 788,542 21,000 m2 22.58 474,095 21,000 m2 86.88 1,824,545 21,000 m2 9.71 203,987 21,000 m2 23.27 488,719 21,000 m2 22.26 467,470 21,000 m2 35.41 743,580 21,000 m2 29.84 626,707 Consumer unit, power and lighting installation, earthing and bonding 21,000 m2 87.69 1,841,549 Protective sprinklers 21,000 m2 16.53 347,061 21,000 m2 26.98 566,630 Sanitary ware Water Meter, tanks, pumps, distribution, valves and insulation Heat source ASHP Total Space heating and air treatment systems Pumps, buffer vessels, plantroom installations, distribution, insulation, cooling via splits/VRF installation to BoH, plantrooms, amenity areas Ventilation Ventilation to reception, amenity areas, plantrooms, BoH areas, smoke clearance to apartment corridors Electrical installations Low-voltage installation, apartment power, life safety installations, generator, power and lighting to landlord areas, earthing and bonding Protective Sprinklers, wet riser, earthing and bonding Communications Fire alarm, fire brigade evacuation finished sockets FIRS, fibre to premises, Wi-Fi, keyless entry, videophone entry, building and management APPS, DAS, security, BMS, billing Fit-out Disposal Foul disposal to apartments, connections to pods Water Hot and cold water to apartments, connections to pods Heat source HIU to apartments Space heating and air conditioning Underfloor heating Ventilation MVHR, ductwork and accessories Electrical Communications Fire alarms, TV and data installations, videophone entry Total 619.66 13,012,787 Cost model for example BTR block, which is in northern England and has 25 storeys and 248 65m2 apartments 30 July 2022 www.cibsejournal.com CIBSE July 22 pp30-31 Cost Model.indd 30 24/06/2022 17:32