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40% Rise in Build-To-Rent Homes

by Paul Addison on February 19, 2019 No comments

In the year between Q4 2017, and Q4 2018, there was a 39% rise in the number of build-to-rent homes currently under construction in the UK.

This is equivalent to 43,374 build-to-rent homes, compared to 31,250 at the end of 2017, per research commission by the British Property Federation (BPF) to Savills.

A 29% rise (22,762 to 29,416) in the number of homes completed was seen in the period between Q4 in 2017 and Q4 in 2018. A 10% rise (66,718 to 60,794) in the number of build-to-rent homes in planning was seen between the same period.

There is a total number of 139,508 build-to-rent homes across the UK that are complete, under construction and in planning.

It is mentioned in the research that for the first time, the over-all number of completed build-to-rent homes throughout the UK (14,615), has caught up with the total in London (14,801).

In relation to construction, there are 24,010 homes under construction across the UK in comparison to 19,304 in London.

The director of real estate policy at the BPF, Ian Fletcher, said:

“With the revised NPPF asking local authorities to identify how many new rental homes their respective areas need, the future should remain bright for build-to-rent. This has never before been enshrined in UK planning policy and will only add to the growing number of local authorities that are seeing the benefits of build-to-rent in adding much-needed housing supply across the UK.”

This research follows the amendments made to the National Planning Policy Framework (NPPF) in 2018.

Build-to-rent homes are now explicitly referred to in the NPPF, to deliver direction to local authorities when dealing with planning applications from the sector.

A partner and head of housing at law firm Gowling WLG, Ashley Mitchell, commented on the research, saying:

“While this is good news for one element of UK housing supply, it underlines a growing dynamic in the market.  BTR appeals largely to a generation of professionals who view their home as a consumer product.  Home ownership is becoming analogous to car ownership – the value is in the experience, not the investment.” 

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Paul Addison40% Rise in Build-To-Rent Homes

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