Analysis published by the British Property Federation (BPF) shows the build-to-rent (BTR) sector continues to grow at pace, with the total number of homes completed, under construction or in planning up 13% year-on-year to 237,000 and a record number of local authorities having BTR in their housing pipeline.
The analysis, conducted at the end of the second quarter 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 10% increase in units in planning (to 115,859) suggesting the growth of the sector will be sustained.
The report also highlights the expansion of the BTR sector across the UK, with the total number of homes completed or in the pipeline in regional cities up 16% year-on-year versus 8% in London, with a record 45% of local authorities now including BTR homes in their future housing supply, up from 37% in 2021 and just 25% in 2018.
BTR delivery is evolving, with single family BTR 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.
Ian Fletcher, director of real estate policy, said: ‘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 BTR across the country.’
‘At the inception of the BTR 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.’
Jacqui Daly, director of residential investment research at Savills added, ‘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.’