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Why BtR SFH Outperforms Typical PRS

IntroductionEnhanced tenant attraction and retentionPremium pricingEfficient property management Strong reputation that a well-established brand brings to the tableNorris Green, LiverpoolLower Broughton, SalfordManor Top, SheffieldAs experts in the single family build-to-rent sector, we understand that the market dynamics have shifted towardsbranded developments, which are increasingly favored by tenants and investors alike. One of the key drivers behind this preference is the superior Initial Return on Investment (ROI) offered by brandedproperties in comparison to traditional Private Rented Sector (PRS) stock. This phenomenon can be attributed to acombination of factors, including We will delve into three areas that have experienced significant re-generation where it can be demonstrated that ahigher Initial ROI can be achieved on branded developments and how they create value for investors in the ever-evolving build-to-rent landscape.The locations that we will be providing examples of are:

Norris Green,Liverpool 221SF BtR homes Lower Broughton,Salford 120 SF BtRhomes Manor Top,Sheffield 163 SF BtRhomes

20232011Formerly known as the ‘Boot Estate, thehousing estate was once a thrivingresidential community, however structuralissues in the houses identified in the 1980’srendered the homes unfit for occupationand led to a two decade programme ofcompulsory purchase and demolition. During this period the community wasfragmented and the estate suffereduncertainty and decay.In 2007 Liverpool City Council establishedLiverpool Partnership LLP with Sigma Capitalas the regeneration vehicle to undertake aninitiative to regenerate the area.Norris Green, Liverpool, L11 1EX

2015Average Rent£690 pcm 2023Average Rent£975 pcm 41% increase2015Average Rent£585 pcm2023Average Rent£812 pcm39% increase BRANDED PRSUN-BRANDED PRSThe first phases of development were made financially possible by the utilisation of the Homes andCommunity Agency funding to deliver a total of 829 houses of mixed tenure of which 221 were for PrivateRental. 2015 saw the final phase of 269 units of which 221 were for the PRS (Gatehouse Bank - DifRent)Norris Green, Liverpool, L11 1EX - 2015 - 20232015Av. Sales Value£153,000 2023Av. Sales Value£262,0003 Bed Semi-detached

20232005 Lower Brougton, SalfordIn 2005, it was announced that an area ofhousing near Camp Street in Lower Broughtonwould be demolished to make way for 3,500new houses. Part of a wider regenerationproject which will later extended to all councilhouses in the area. Regeneration was taken onby Salix Homes and Countryside Properties andwas completed in 2014.

The regeneration of the Lower Broughton development helped create a successful, sustainable neighbourhoodwhich is safe, healthy, and economically active. A development of residential accommodation and local facilitieshave replaced brownfield sites and run-down, unpopular terraced housing. 120 homes were for Private Rental forthe Single Family housing market.Broughton, Salford M7 1AZ - 2015 - 20232015Average Rent£ 810 pcm 2023Average Rent£1,425 pcm 75% increase2015Average Rent£710pcm 2023Average Rent£1,225 pcm72% increase BRANDED PRSUN-BRANDED PRS2015Av. Sales Value£140,0002023Av. Sales Value£284,0003 Bed Semi-detached

Manor Top, SheffieldIn 1995, after a local school had beendestroyed in an arson attack, the MP RoyHattersley (a former chair of Sheffield’sHousing Committee in the sixties) dubbed theManor Estate ‘the worst estate in Britain’ –quite a comedown for an estate which hadonce been one of Sheffield’s showpieces. Known as a no-go estate it was one ofSheffields most problematic areas. 2017 saw plans to build a housingdevelopment close to Manor Top in Sheffieldwas approved by Sheffield City Council. Thescheme, otherwise known as ‘Manor Boot’was led by Sigma Capital Group plc andSheffield Housing Company20172023

Since 2017 the regeneration partnership has created over 800 jobs, 75 apprenticeships and spent more than £80mwith construction businesses in the South Yorkshire region and in 2021 completed its 1000th home. 163 homes arePRS BtR SFH offered by the Simple Life brand. Manor Top, Sheffield S2 1AQ - 2019 - 20232019Average Rent£780 pcm 2023Average Rent£1,250 pcm 56% increase2019Average Rent£600pcm 2023Average Rent£750pcm25% increase BRANDED PRSUN-BRANDED PRS2019Av. Sales Value£141,0002023Av. Sales Value£189,0003 Bed Semi-detached

Revitalising Communities through High-Quality, Sustainable Build-to-Rent PropertiesThis document presents compelling evidence that developing build-to-rent properties in areas of regeneration,particularly in communities with a high volume of poor-quality rental stock, can significantly attract new tenants andencourage them to pay a premium for their rental property. By offering well-built, energy-efficient properties with security of tenure and fostering a caring, safe communityatmosphere, these developments not only improve the living standards of tenants but also contribute to the overallrevitalisation of the area. The findings of the three developments are not unique and not only demonstrate and emphasise the potential forsuch projects to generate higher returns for investors, while also promoting social and environmental sustainability inpreviously underserved communities but also demonstrate that these type of development can be replicated acrossthe country.

APPENDIX

2015TypicalPRS Av. Rent £5852023 BtR PRSAv. Rent £9752015 BtR PRSAv. Rent £6902023TypicalPRS Av. Rent £712Appendix - Market RENTAL Comparables Norris Green, Liverpool, L11 1EX

Appendix - Market SALES Comparables Norris Green, Liverpool, L11 1EX2015 SalesValues2023 SalesValues

2015 BtR PRSAv. Rent £810 2023Typical PRSAv. Rent £1,225 2015Typical PRSAv. Rent £710 2023 BtR PRSAv. Rent £1,425 Appendix - Market RENTAL Comparables Lower Broughton, Salford M7 1AZ

Appendix - Market SALES Comparables, Lower Broughton, Salford M7 1AZ2015 SalesValues2023 SalesValues

2023 BtR PRS Av. Rent £1,2502023Typical PRSAv. Rent £750 2019Typical PRSAv. Rent £600 2019 BtR PRSAv. Rent £780Appendix - Market RENTAL Comparables Manor Top, Sheffield S2 1AQ

Appendix - Market SALES Comparables, Manor Top, Sheffield S2 1AQ2019 SalesValues2023 SalesValues

"Thank you for all your assistance whilst we have been at the property and yourcontinued hard work to provide a lovely home to live in. We have rented with manypeople and places before but can honestly say our experience with yourselves hasbeen perfect and exactly how it should be."1123