Number of newly completed build-to-rent homes across UK regions increases by 51% in 2019
17 January 2020, London: Research published today by the British Property Federation (BPF) shows that the total number of newly completed build-to-rent homes – high-quality and professionally-managed homes built for renters – across the UK’s regions, excluding London, increased by 51 per cent in 2019.
At the end of Q4 2018, the sector had completed 13,312 new homes across the UK’s regions. This figure jumped to 20,120 by the end of Q4 2019.
Over the same period, the sector completed 3,061 new homes in London – from 17,000 to 20,061 – an increase of 18 per cent.
For the first time, the total number of newly completed build-to-rent homes across the UK regions has surpassed the total in London.
Table 1: Total number of newly completed build-to-rent homes recorded at the end of Q4 2019 vs Q4 2018
London, however, retains its lead over the regions with more build-to-rent homes at varying stages of development.
Table 2: Total number of build-to-rent homes recorded at the end of Q4 2019 at varying stages of development in London vs UK regions
To aid transparency on the build-to-rent sector and its growth, the research has been produced by Savills, commissioned by the BPF, and is published quarterly as an interactive map on the BPF’s website.
Taking the sector’s entire development pipeline into consideration, there are now 152,071 build-to-rent homes in the UK, including both London and the regions, of which 40,181 are complete, 35,415 under construction and 75,475 in planning – an increase of 15 per cent over the last year.
Table 3: Total number of build-to-rent homes recorded at the end of Q4 2019 vs Q4 2018
The average size of build-to-rent developments is also growing, indicating the confidence that investors have in the sector. At the end of Q4 2019, the average size of each completed build-to-rent scheme was 141 homes, this increases to 253 homes for the schemes under construction, while the average size of schemes in the planning system is higher still at 317 homes.
Ian Fletcher, Director of Real Estate Policy, British Property Federation, comments:
“Build-to-rent is well-liked by tenants and is proving popular with many local authorities. It has truly gone nationwide now, with homes being delivered across the country.
“As the Government remains committed to delivering 300,000 homes, the sector is making a significant contribution to supply, regeneration and placemaking, with the average size of planned build-to rent-developments almost 200 homes higher than those that are complete, according to our figures.”
Jacqui Daly, Director, Savills residential research, adds:
“With completions up by a third year on year, build-to-rent is an extremely positive real estate story, both for developers and investors, and it’s bringing forward much-needed, high quality and well-managed rental homes.
“There are real opportunities to increase supply in London. Having been some three or four years ahead of the rest of the UK, it is beginning to lag in terms of new pipeline. ”
Kindly shared by British Property Federation (BPF)