The latest research from property finance specialists Rangewell has found that as amateur landlords exit the market, SME property developers continue to take their place.
The report has found that many of these new rental homes do not appear on commercial property portals but are making a big impact on local rental supply.
Between April 2021 and October 2024, around 290,000 rental homes were sold in England and Wales, according to Savills.
Rising interest rates, higher stamp duty and more regulation led many amateur landlords to leave the market, many citing mortgage costs as their main reason for selling. Rents have risen significantly as the supply of homes has shrunk.
Rangewell’s analysis of Valuation Office Agency council tax data and Land Registry completions showed strong Build to Rent activity.
It says that in the last two years, there have been an estimated 7,780 new potential BTR homes in Leeds, 6,730 in Birmingham, 6,470 in Salford, 5,570 in Manchester. The county of Cornwall added 5,590 new homes.
Regionally, the South East of England topped the list with 85,420 new dwellings, followed by London with 73,370, the North West with 57,230 and the West Midlands with 46,600.
Alasdair McPherson, commercial property expert at Rangewell, said: “We’re witnessing a fundamental shift in the rental market.
“As amateur landlords retreat, professional SME developers are stepping in with purpose-built rental properties, professional management standards and business discipline. These developers are the unsung heroes of the housing crisis, creating 6-25 unit schemes in neighbourhoods that institutional players overlook, converting older buildings, and delivering homes where people actually want to live.
“They can move quickly, finance projects efficiently and adapt to local market conditions in a way that larger funds cannot.
“Our research suggests that hidden Build to Rent activity could be 10 to 15 times greater than the volume visible on commercial portals. For investors, this is where the real opportunity lies, but it requires specialist finance to unlock.”
