Record number of local authorities have Build-to-Rent in housing pipelines
- New analysis shows the total number of BTR homes in the UK have increased 13% on an annual basis between Q2 2021 and Q2 2022
- More local authorities embracing BTR as part of housing supply, with 45% of councils having homes in the pipeline vs 37% at Q2 2021
- BTR sector in regional cities grew at double the pace of London
Analysis published today by the British Property Federation (BPF) shows the Build-to-Rent (BTR) sector continues to grow at pace, with the total number of homes completed, under construction or in planning up 13% year-on-year to 237,000 and a record number of local authorities having BTR in their housing pipeline.
The analysis, conducted at the end of the second quarter in collaboration with Savills, showed a 16% increase in the number of completed homes to 73,739, with a 13% increase in units under construction (to 47,764) and 10% increase in units in planning (to 115,859) suggesting the growth of the sector will be sustained.
The report also highlights the expansion of the BTR sector across the UK, with the total number of homes completed or in the pipeline in regional cities up 16% y-o-y versus 8% in London, with a record 45% of local authorities now including BTR homes in their future housing supply, up from 37% in 2021 and just 20% in 2017.
The research also highlights how BTR delivery is evolving, with Single Family BTR the fastest-growing sub-sector over the past 12 months with a 44% increase in the number of units in the pipeline (to 21,000).
Ian Fletcher, Director of Real Estate Policy, British Property Federation comments:
“Our analysis for the second quarter of the year further underlines just how rapidly the UK Build-to-Rent sector is expanding.
“We can see a broader spread and increased presence of BTR across the country, with more local authorities including it in Local Plans and considering it a vital component of future housing supply. This shows the market maturing beyond London and major regional city centres to towns and suburban locations and BTR becoming very much part of a more diverse and futureproof UK housing market.
“At the inception of the BTR sector in 2012, the intention was that it should become a nationwide phenomenon, adding to supply and providing a quality rental offer across the country. It is pleasing to say a decade later that hope has become the reality.”
Jacqui Daly, Director of Residential Investment Research at Savills added:
“We continue to see strong demand for Build to Rent from investors, who are paying competitively for stock against deep occupier demand in a chronically undersupplied private rented sector.
“The opportunity for developers and investors in single family Build to Rent is being increasingly widely recognised, with this the fastest growing sub-sector over the past year, with a 44% uplift in the number of homes in the pipeline.
“At the same time, housebuilders are also increasingly looking at single family Build to Rent as an exit, particularly given the looming end of Help to Buy, which itself looks set to boost demand for private rented homes.”