Based on the number of Build to Rent units currently under construction, Ascend Properties has revealed how the sector is poised to gain further momentum.
Previous research by the company found that where pandemic completions across the sector were concerned, London saw a 28% uplift, while elsewhere across the UK completions were down -33%. However, when analysing data on the number of Build to Rent units currently under construction, the opposite is true.
Across the UK the latest data shows that 36,054 Build to Rent units are currently in the pipeline – a -1.8% drop year on year. In London, 16,227 Build to Rent units are under construction in 2021 – a year on year decline of -8.2%. But elsewhere across the UK, the number of units in the process of delivery has climbed by 4.1% in 2021 compared to 2020.
Ascend Properties has also analysed the Build to Rent pipeline in terms of the sheer value of bricks and mortar it will be bringing to market as a result. In total, the 36,054 UK wide units currently under construction are estimated to add £10.9bn in value to the Build to Rent market. With new build property values higher in London, Ascend Properties estimates those units currently under construction to add an additional £8.1bn in market value.
Although higher than the rest of the UK, this does equate to a -7.5% drop in the total value of the capital’s Build to Rent pipeline on a year to year basis. In contrast, the pipeline across the rest of the UK is estimated to be worth £5.7bn and while it trails London, this is an impressive 9% uplift on an annual basis.
“The strength of the Build to Rent sector goes beyond the number of units being delivered to market and so it’s important that we also consider those currently under construction as an indicator of future sector performance.
“In this respect, the strength of the sector is pretty evident as despite the uncertainty posed by the pandemic, Build to Rent construction is down less than 2% in 2021 when compared to the same time last year just as Covid was taking hold.
“While London is leading the way in terms of pandemic completions and the overall potential value of the Build to Rent pipeline, the rest of the UK is steaming ahead in terms of an increase in the number of units under construction and their year on year value growth.
“So there are positive signs across the board that the Build to Rent sector continues to build momentum and it’s also important to note that this is based on the Q1 pipeline only, with these figures only likely to grow as the year progresses.”Managing Director of Ascend Properties, Ged McPartlin