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23/01/2020

2019 saw increase in Build to Rent homes

Words: Laura Edgar
House price growth / Shutterstock

The number of Build to Rent homes delivered across UK regions, excluding London, increased by 51 per cent in 2019.

This is according to research published by the British Property Federation (BPF) and carried out by Savills.

It found that at the end of Q4 2019, the number of completed Build to Rent homes was 20,120, compared with the 13,312 homes that had been completed in the year to the end of Q4 2018.

In London in 2019, the Build to Rent sector completed 20,061 homes, an increase of 3,061 homes on the 17,000 homes completed in 2018.

The BPF said that for the first time UK regions delivered more Build to Rent homes than London.

The capital, though, does have slightly more Build to Rent homes at varying stages of development than the rest of the UK.

 

 CompleteUnder constructionPlanningTotal
London20,06119,76736,58076,408
Regions20,12016,64838,89575,663

 

There are, according to the study, 152,071 Build to Rent homes in the UK – in the regions and the capital. This breaks down to 40,181 completed homes, 35,415 under construction and 75,475 going through the planning system. The research states this is a 15 per cent increase compared with 2018.

The average size of the developments is increasing too. At the end of 2019, the average scheme size of completed developments was 141 homes. This rises to 253 homes for those under construction and 317 homes for those going through the planning system.

Ian Fletcher, director of real estate policy at the BPF, commented: "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, added: “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. Uncertainty over the content of the new London Plan has held some planning applications back – the revisions in the latest draft will give more certainty to investors and encourage more schemes to come forward.”

Image credit | Shutterstock

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