London continues to be one of the top markets for investors in the private rental sector. The demand for homes in the private rental sector in London is consistently growing. Consequently, the UK capital is experiencing an increase in build-to-rent development in recent times.
Local renters, international travelers, business community, tourists, generation rent and students are collectively driving the growth of the private rental sector. In order to meet this growing demand, build-to-rent is emerging as a niche area for developers in London. Going forward, build-to-rent is set to become an integral component of the London property market.
According to data from CBRE, more than 10,500 residential units under build-to-rent have been completed in many boroughs of London. Newham tops the list with 2,974 units followed by Croydon (1,583), Lewisham (1,050) and Tower Hamlets (1,040). Other boroughs where build-to-rent units have been built in excess of 500 are Southwark, Brent, Harrow, Hackney, Barnet and Ealing.
Another 9,000 build-to-rent units are currently under construction in many London boroughs. As many as 2,515 units are under construction in Brent, followed by Tower Hamlets (1,396) and Croydon (998). Hounslow, Southwark, Newham, Ealing, Hammersmith and Fulham, Barnet and Waltham Forest are some of the boroughs where construction of build-to-rent units has gained momentum.
It is evident that build-to-rent sector is assuming importance in London, and could be the long-term solution to overcome the housing shortage.
Across London, demand for homes in the private rental sector is growing and consequently we are seeing an increase in build to rent development.