Build-to-Rent stock up 135% as sector now accounts for 1% of all rental properties
The build-to-rent sector now accounts for 1% of all UK rental properties, having surged by 135% according to the latest research by (BtR) specialists, Ascend Properties.
The build-to-rent sector has gained momentum in recent years and it’s clear to see why. Previous research by Ascend found that there are now 2.4m more of us living within the rental sector when compared to a decade ago, so developments designed and built specifically for renters are more in demand than ever.
While build-to-rent properties are appealing in terms of their modern design and living standards, they also provide an additional sense of community via shared areas such as gyms, lounges, dining areas and other social outlets such as games rooms.
Ascend’s research shows that just four years ago, there were 22,831 build-to-rent properties in the UK rental market, accounting for just 0.4% of private rental stock. In London, the level of build-to-rent stock was greater, with the 12,709 build-to-rent specific properties accounting for 1.2% of the total rental market.
In the three short years since, the sector has grown considerably. Across the UK, build-to-rent now accounts for 53,750 homes within the private rental sector. That’s a 135% increase in build-to-rent stock since 2017, with the sector now accounting for an estimated 1% of all UK rental properties in the private sector.
While this might not sound a lot, the private rental sector itself has grown by just 0.3% since 2017 where the total estimated number of private rental homes is concerned.
Again, the impact of the build-to-rent sector is even more notable in London. The sheer volume of build-to-rent stock in the capital has increased by 109% since 2017, with the current total of 26,625 accounting for 2.5% of all private rental properties in London
While the London rental market has grown at a considerably faster rate than the wider UK, it has still seen just a 4% estimated increase in total private rental stock since 2017, further highlighting the impressive growth of the build-to-rent sector within this space.
Managing Director of Ascend Properties, Ged McPartlin, commented:
“Although build-to-rent has been around for quite some time, it’s only in recent years that the sector has started to become a serious area of focus for many big housebuilders.
“This growing trend is clear when analysing the overall rental market and the increasing number of build-to-rent properties within it, with the sector now accounting for an estimated one per cent of all private rental properties.
“However, this impressive growth is just the tip of the iceberg and we expect to see the share of rental homes accounted for by build-to-rent continue to grow.”
|Table shows the change in build-to-rent and overall private rental market stock, as well as build-to-rent as a percentage of all private rental stock|
|Private rental tenure stock||UK||5,521,562||5,459,084||5,418,962||5,540,700||0.3%|
|Build-to-rent as a percentage of all rental stock||UK||0.4%||0.6%||0.8%||1.0%||0.6%|
Kindly shared by Ascend Properties
Main article photo courtesy of Pixabay