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Construction of build-to-rent homes increases by 40% in the UK, research shows
The number of build-to-rent homes under construction in the UK has increased by nearly 40% in the past year, while the number of those completed has increased by nearly 30%.
The build-to-rent sector, which provides homes built specifically to be rented out and professionally managed, is relatively new in the UK but has grown in recent years due to the rising cost of buying outright.
In total, there are 139,508 build-to-rent homes complete, under construction or in planning across the UK – an increase of 22% over the past year.
The research was published today by the British Property Federation (BPF), which represents property owners, developers and agents.
It showed that for the first time, the number of build-to-rent homes in the UK regions has caught up with London. There are now 14,615 completed homes in the regions and 14,801 in the capital.
The build-to-rent model has been criticised for not addressing the demand for family sized accommodation. However, numbers show that build-to-rent has been able to diversify its offer – with 15% of schemes in the pipeline including houses rather than apartments.
In build-to-rent in London, there has been a significant drop in the use of permitted development rights (PDR), a national grant which allows certain building works and changes of use to be carried out without having to make a planning application.
PDR was used for 30% of completed build-to-rent homes in London, but only for 9% of those currently under construction.
Ian Fletcher, director of policy (real estate) at the British Property Federation, said: “Clearly for build-to-rent, PDR has supported kick-starting the sector’s growth, but its use has decreased and this trend is likely to continue.
“With the revised National Planning Policy Framework asking local authorities to identify how many new rental homes their respective areas need, the future should remain bright for build-to-rent.”
