Build-to-Rent (BTR) homes in the UK have increased by almost 20% over the last 12 months.
posted on: 19th April 2022 / category: Uncategorised / posted by: UKDC
The number of build-to-Rent (BTR) homes across the UK has increased by 19% in the last 12 months, according to the British Property Federation.
This means that the total number of BTR homes that have now been delivered in the UK stands at 72,668 which is up from 61,000, just over year ago.
The spread across the UK is as you would expect with London seeing 5,802 new homes being delivered and the regional cities taking the remaining 5,866 homes.
The construction and planning pipeline shows us that the existing market growth will be sustained in the short to medium-term, with a total of 46,304 homes under construction at the end of quarter one, which is up 14% year-on-year, while new residential units in the planning pipeline are 11% higher than 12 months ago.
This level of growth demonstrates just how rapidly the UK Build-to-Rent sector has grown and continues to expand. The number of completed homes increasing by around a fifth in a single year which is a huge leap and suggests that the sector is making a strong contribution to UK housing delivery.
From an investment perspective, this shows that there is long-term demand for rental homes in the UK which means that the sector’s prospects remain very positive. Although there are some concerns nationally caused by build cost inflation, the sector’s planning pipeline continues to grow, and we are seeing a shift towards larger-scale development as investors recognise the immense shortage of high-quality homes in many towns and cities.
The Build-to-Rent sector is already making an important contribution to national housing delivery. Expansion into new locations can help address the shortages of rental stock seen up and down the country, while the growth of single-family housing provision, an area of significant under-supply, is the next stage of growth for the sector. The sector has also seen a shift towards family housing in urban fringe locations which has seen the delivery of much needed family accommodation on the out skirts of major conurbations. This is a strategy which has been adopted by Ecotek Homes who have been acquiring sites throughout the UK to deliver much needed low carbon, affordable family housing through their off site modular solutions.