The Build to Rent sector has gained momentum in recent years. Previous research by Ascend Properties found that there are now 2.4m more of us living within the rental sector when compared to a decade ago – revealing that renting is in more demand than ever.
The research shows that just four years ago, there were 22,831 Build to Rent properties in the UK rental market – which accounts for 0.4% of private rental stock. In London, the level of stock was greater, with 12,709 Build to Rent properties accounting for 1.2% of the total market.
In the past three years the sector has grown considerably. Across the UK, Build to Rent now accounts for 53,750 homes within the private rental sector. That’s a 135% increase in stock since 2017, with the sector now accounting for an estimated 1% of all UK rental properties in the private sector. This might not sound like a big increase, but the private rental sector itself has grown by only 0.3% since 2017 where the total estimated number of homes is concerned.
Again, the impact of the Build to Rent sector is even more notable in London. The sheer volume of stock in the capital has increased by 109% since 2017, with the current total of 26,625 accounting for 2.5% of all private rental properties in London.
While the London rental market has grown at a considerably faster rate than the wider UK, it has still seen just a 4% estimated increase in total private rental stock since 2017, further highlighting the impressive growth of the Build to Rent sector within this space.
“Although Build to Rent has been around for quite some time, it’s only in recent years that the sector has started to become a serious area of focus for many big housebuilders.
“This growing trend is clear when analysing the overall rental market and the increasing number of Build to Rent properties within it, with the sector now accounting for an estimated 1% of all private rental properties.
“However, this impressive growth is just the tip of the iceberg and we expect to see the share of rental homes accounted for by Build to Rent continue to grow.”Ged McPartlin, Managing Director, Ascend Properties