Build-to-rent (BTR) is gaining popularity in the UK with the number of BTR homes under construction increasing by 40 per cent in 2018. This shows that developers and institutional investors are showing more interest in BTR - new, high-quality and professionally-managed homes built for renters.
There are now 139,508 build-to-rent homes in the UK, of which 29,416 are complete, 43,374 under construction (40 per cent increase - 31,250 homes in 2017) and 66,718 in planning, according to a research published by British Property Federation (BPF). The number of homes completed and in planning have also increased by 29 per cent and 10 per cent respectively in 2018.
The findings follow a significant year of new housing policy from the Government, including a revised National Planning Policy Framework that now references BTR specifically, to provide guidance for local authorities when dealing with planning applications from the sector.
BTR homes are being preferred even outside the UK capital. The total number of completed BTR homes across the UK regions is marginally less than London – with 14,615 completed homes in the regions and 14,801 in the capital. While 24,010 BTR homes are under construction in the regions 19,304 BTR homes are being built in London.
The research has tracked the capacity of strategic sites across the country identified for build-to-rent. A total of 22,642 homes have been earmarked by local authorities and developers for delivery on these sites.
BTR is part of Strawberry Star’s long-term strategy and we will be making a foray into this fast-growing segment in property the UK.
Looking specifically at the use of Permitted Development Rights (PDR) across London, 30 per cent of completed build-to-rent homes have been delivered through PDR, says BPF