Build-to-rent boom has continued to drive significant new housing supply across the UK, according to latest data published by the British Property Federation (BPF).
There were 157,512 build-to-rent homes – new, high-quality and professionally-managed homes built for renters – complete, under construction or in planning across the UK by March-end 2020. This is a 12 per cent annual jump against the same period last year.
The findings revealed that between the first quarter of 2019 and the first three months of 2020, the number of completed build-to-rent (BTR) homes rose by 42 per cent, the number under construction decreased by 11 per cent and the number in planning jumped by 12 per cent.
While professional investment firms typically finance BTR and manage the development for the long-term, the research shows that the local developers are currently responsible for building 28 per cent of the market. UK housebuilders (27 per cent), major UK developers (17 per cent), contractors (14 per cent), registered providers (9 per cent) and major international developers (3 per cent) account for the UK BTR market.
The number of BTR homes completed in London increased by 29 per cent by March 2020 to reach 20,770 units. As many as 16,823 units are under construction, 37,299 are in the planning stage.
Outside of London, the sector continues to see a significant rise in the number of homes completed with a jump of 58 per cent in the last 12 months across the regions. The number of BTR homes completed in the regions was 22,466 by March 2020. While 16,682 are under construction, 43,472 are in the planning stage.
The BPF said that it is too early to see the impact of coronavirus on the build-to-rent sector’s housing pipeline. With housebuilders now accounting for the largest share in the BTR pipeline compared to just 10 per cent just three years ago, the market is poised for growth in the long-term.
Ian Fletcher, Director of Real Estate Policy, British Property Federation comments: "Our statistics show that a quarter of build-to-rent delivery is now coming from major housebuilders and their support of the sector, through for example access to land, could really boost growth in this sector."