chaNGe aGeNt ian mErricK throuGh the KeyhoLe The build-to-rent market is set to generate over 30bn of new investment within five years. Essential Livings Ian Merrick says the economics will only work if apartments are designed with low energy use in mind H Essential Living is a developer and operator of private rental homes in the UK, and claims it is entering the market with a full lifecycle approach to letting. Rather than buying up individual homes built for the home-ownership market, it is looking to create new clusters of homes for rent, as long-term investment opportunities. With an initial 150m in equity funding from M3 Capital Partners, Essential Living will acquire sites, design and develop properties, and manage them long term. It aims to deliver 5,000 homes over the next decade in London and the South East. how will you ensure the buildings perform as designed? Essential Living apartments are all designed and built with one core thing We will use standardised components across schemes from doorknobs to washing machines so we can easily replace or swap out damaged components in mind: how theyll be used and operated. Crucially, we will remain in the building, overseeing the performance to make sure standards are maintained. All of our schemes are built to meet the Lifetime Homes and the Secured by Design standards, and once they are operational tenants will have access to 24-hour help to avoid small issues turning into a crisis or leading to damage. Do you have any particular energy/energy efficiency strategy for each design? All of our schemes will be highly water and energy efficient, so renters can reduce their carbon footprint while benefiting from reduced utility bills. Our sites will have tailored waste- Will you encourage occupiers to minimise energy use? There will be in-built design aspects that encourage renters to use less energy, such as laundry-drying space to reduce the need for artificial methods, and energy-display devices that allow tenants to monitor how much electricity and hot water they are using. We are also hoping to have specifically for various types of tenants. For example, Creekside Wharf, in Greenwich, will have a dedicated block designed specifically for the needs of families. We worked with focus groups to produce design initiatives, such as extra acoustic insulation and bedrooms positioned further away from living spaces for early bedtimes, as well as higher, closed balcony balustrades to make them extra safe for children. a home-user guide that will encourage renters to cut both costs and their environmental impact through simple lifestyle changes. how will you charge for energy use? We would like to try to combine many of the services into a single payment, so customers know precisely how much money they have in their pocket at the end of the month. The economies of scale obtained through the bulk purchase of energy or broadband services could levy price discounts for customers, while offering a small administrative margin for us. are the design and operational teams integrated? Yes, all of our schemes are designed, built and managed by Essential Living, so the teams at various stages of the schemes life-cycle are fully integrated. When it comes to operations, the teams and the tenants will all know what to expect. We will use standardised components throughout from doorknobs to washing machines so we can easily replace or swap out damaged components as seamlessly as possible. management plans, which will mean around 85% of a sites waste will be diverted from landfills. Another central theme will be lowenergy design features in communal areas, such as low-energy lighting and infrared detectors to make sure it only comes on when needed. Will you design homes for likely occupants? Yes. First and foremost our homes are designed for long-term rent, which means spacious, dual-aspect apartments where possible, with designated study areas and communal areas to encourage tenants to make friends in the building. Schemes will also be designed is quality important for your brand? Absolutely. Renting is currently defined by small-scale, individual operators and tales of poor-quality accommodation, disappearing deposits and unexpected terminations or evictions. We will be operating and managing the buildings long term, so there will be a strong interest in keeping our customers happy so they want to stay for the duration. Our ambition is to establish a benchmark for a new breed of professionally managed rental homes, so people will know who we are, what we do and what to expect. ian Merrick is operations director at essential living