Analysis published by the British Property Federation (BPF) shows the Build to Rent sector continues to grow at pace, with the number of completed homes increasing by a fifth (19%) in the past twelve months. Conducted at the end of Q1 2022, the analysis shows that a total of 72,668 Build to Rent homes have now been delivered in the UK, up from 60,965 a year ago, with completions in the past year evenly spread across London (5,802 homes) and regional cities (5,901).
The construction and planning pipeline suggests market growth will be sustained, with a total of 46,304 homes under construction at the end of Q1 2022 – up 14% year-on-year. Units in the planning pipeline are 11% higher than twelve months ago.
“Our analysis for the first quarter of the year underlines just how rapidly the UK Build to Rent sector is expanding. Completed homes increasing by a fifth in a single year is a significant leap and suggests the sector is making a strong contribution to UK housing delivery.
“Long-term demand for rental homes means the sector’s prospects remain very positive. One thing to watch in coming quarters will be turbulence caused by build cost inflation, however, the sector’s planning pipeline continues to grow, and we are seeing a shift towards larger-scale development as investors recognise the acute shortage of high-quality homes in many cities and the need to intensify land use in and around densely populated areas.”Ian Fletcher, Director of Real Estate Policy, British Property Federation
Build to Rent growth: 31 March 2021 – 31 March 2022
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The research – undertaken in partnership with Savills – also highlights how Build to Rent developments are evolving. Completed schemes are delivering an average of 140 units, those under construction average 243 homes and projects in planning average 308 units.
“It is clear that Build to Rent is already making an important contribution to national housing delivery. Expansion into new locations can help address the shortages of rental stock seen up and down the country, while the growth of single-family housing provision, an area of chronic undersupply, is the next stage of growth for the sector. New rental supply in both urban and suburban markets have the potential to sustain housing delivery volumes once Help to Buy comes to an end on 31 March 2023 and to be a vital source of high-quality housing.”Guy Whittaker, Associate, Residential Research, Savills