New analysis published today by the British Property Federation (BPF) shows the Build to Rent sector continues to grow at pace. The total number of homes completed, under construction or in planning is up 13% year-on-year to 237,000 – and a record number of local authorities have Build to Rent in their housing pipeline.
Conducted at the end of Q2 2022, the analysis in collaboration with Savills showed a 16% increase in the number of completed homes to 73,739, with a 13% increase in units under construction to 47,764 and a 10% increase in units in planning to 115,859 – suggesting the growth of the sector will be sustained.
The report highlights the expansion of the sector across the UK, with the total number of homes completed or in the pipeline in regional cities up 16% YoY versus 8% in London. It also reveals a record 45% of local authorities now include Build to Rent homes in their future housing supply, up from 37% in Q2 2021 and 25% in 2018.
“Our analysis for the second quarter of the year further underlines just how rapidly the UK Build to Rent sector is expanding.
“We can see a broader spread and increased presence of Build to Rent across the country, with more local authorities including it in Local Plans and considering it a vital component of future housing supply. This shows the market maturing beyond London and major regional city centres to towns and suburban locations and Build to Rent becoming very much part of a more diverse and futureproof UK housing market.
“At the inception of the Build to Rent sector in 2012, the intention was that it should become a nationwide phenomenon, adding to supply and providing a quality rental offer across the country. It is pleasing to say a decade later that hope has become the reality.”Ian Fletcher, Director of Real Estate Policy, British Property Federation
Build to Rent delivery is also evolving, with the research highlighting that single-family Build to Rent housing is the fastest-growing sub-sector over the past 12 months, with a 44% increase in the number of units in the pipeline – to 21,000.
“We continue to see strong demand for Build to Rent from investors, who are paying competitively for stock against deep occupier demand in a chronically undersupplied private rented sector.
“The opportunity for developers and investors in single family Build to Rent is being increasingly widely recognised, with this the fastest growing sub-sector over the past year, with a 44% uplift in the number of homes in the pipeline.
“At the same time, housebuilders are also increasingly looking at single family Build to Rent as an exit, particularly given the looming end of Help to Buy, which itself looks set to boost demand for private rented homes.”Jacqui Daly, Director of Residential Investment Research, Savills