BPF Spotlight Series: Q4 2024 Build-to-Rent stats
💡For our latest BPF Spotlight, we caught up with Assistant Director Theo Plowman to unpack the latest BPF and Savills Build-to-Rent (BtR) stats. From a big jump in planning consents to challenges with construction starts, Theo sheds light on what’s happening across the sector. Over to you, Theo:
âť“What general trends are you noticing in the latest BtR stats?
🗣️It’s a mixed bag, really. On the one hand, planning consents for BtR homes shot up by 35% last year, which is great. But on the other hand, construction is struggling to keep up - starts on site are down 18% year-on-year.
London’s bounced back after a rough few years and is leading the charge on consents again, which is a good sign for confidence in the capital. But the big issue is that this pipeline growth isn’t translating into homes being built yet, especially with the added complexities of the new building safety regime.
❓Why do you think the numbers aren’t as positive as they were last year, despite the growing need for housing?
🗣️It’s all about the gap between plans and action. While there’s plenty of enthusiasm for BtR, actually breaking ground is another story.
Viability issues, high construction costs and general market uncertainty are making it tough. For example, London saw a 22% drop in construction starts, reflecting the unique pressures in the city where projects tend to be more costly. And it’s not just BtR - the broader housing market is feeling the pinch, so these challenges are part of a bigger economic picture.
âť“Are there regional differences in the BtR pipeline?
🗣️Absolutely - London’s back in the lead with over 7,500 consents in 2024 - nearly half of those came just in Q4. It feels like investors were holding back on big multifamily developments and are finally getting back in the game.
Outside of London, Birmingham’s been a standout, driving most of the West Midlands’ 4,000+ consents, which is exciting to see. Other regions like Scotland and the North West are a bit slower at the moment. The North West’s cooling off slightly after a strong run, and Scotland’s still dealing with some policy impacts. That said, we’re seeing growth in new areas, particularly as single family housing strengthens its position in the UK residential investment market.
❓Will the new Government’s changes, especially around planning, lead to more applications next year?
🗣️If reforms like streamlined decision-making and local development orders actually make the process simpler, we could see a boost in applications. But turning those consents into real homes is another matter - it will depend on tackling issues like costs and viability.
The Government has a big opportunity here. Investment in UK BtR hit a record ÂŁ5bn in 2024, beating the previous high of ÂŁ4.6bn in 2022, so the money is there. With the right policies, they could really unlock that potential.
