The Build-to-Rent (BTR) sector continues to grow in double digits in London, one of the top residential markets in the world. The total number of newly completed BTR homes – high-quality and professionally-managed homes built for renters – grew by 18 per cent in London, indicating an increase in demand.
Research published by the British Property Federation (BPF) in association with Savills revealed that 3,061 new homes were completed in the BTR sector in London in 2019, taking the total to 20,061.
London continues to remain the top BTR market in the UK, as renters are increasingly preferring well-managed homes. Another 19,767 BTR homes are under construction and 36,580 homes in the planning stage. London accounts for more than 50 per cent of BTR homes at various stages of development.
The UK regions are also registering a healthy growth rate of BTR homes - At the end of 2018, as many as 13,312 new homes were completed in the BTR sector across the UK’s regions. This figure jumped to 20,120 by the end of 2019, experiencing a 51 per cent annual increase. Across the UK’s regions, 16,648 new BTR homes are under construction while 38,895 homes are in the planning stage.
The average size of build-to-rent developments is also growing, indicating the confidence that investors have in the sector. At the end of 2019, the average size of each completed build-to-rent scheme was 141 homes, this increases to 253 homes for the schemes under construction, while the average size of schemes in the planning system is higher still at 317 homes.
Ian Fletcher, Director of Real Estate Policy, British Property Federation comments: “Build-to-rent is well-liked by tenants and is proving popular with many local authorities. It has truly gone nationwide now, with homes being delivered across the country. As the Government remains committed to delivering 300,000 homes, the sector is making a significant contribution to supply, regeneration and placemaking, with the average size of planned build-to rent-developments almost 200 homes higher than those that are complete, according to our figures.”