Number of completed Build to Rent homes rockets 51% in 2019

Build to Rent has been seeping from industry news to mainstream media, with an increasing number of renters becoming aware of its appeal.

Research published by the British Property Federation (BPF) shows that the total number of newly completed build-to-rent homes across the UK’s regions, excluding London, increased by 51% in 2019.

Ian Fletcher, Director of Real Estate Policy, British Property Federation said: “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.”

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%.

For the first time, the total number of newly completed build-to-rent homes across the UK regions has surpassed the total in London. London, however, retains its lead over the regions with more build-to-rent homes at varying stages of development.

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% over the last year.

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.

While Build to Rent has remained an obscure term outside industry players, the public is becoming increasingly familiar with the term. A number of prop tech companies have also put some serious financial muscle behind giving the sector an edge over private rental.

Jacqui Daly, Director, Savills residential research said: “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.”