The build-to-rent sector has grown by 30% in the past year, new figures from the British Property Federation (BPF) have shown.
In its first set of annual data on the sector, the BPF revealed the number of build-to-rent homes completed, under construction or in the pipeline had grown from 90,761 in the first three months of 2017 to 117,893 in the same period this year.
There were 33,075 build-to-rent homes under construction between January and March this year, a 47% jump on the same period last year and the number of completed build-to-rent homes went from 14,371 last year to 20,863 this year – a 45% increase.
The data also revealed that the number of build-to-rent homes greenlighted for development outside of London outstrips those in the capital. There are 20,464 homes under construction outside of London, compared with 12,611 in London.
The research was carried out by Savills.
Dominic Raab, housing minister, said: “The 45% increase in completed build-to-rent homes is good news, but we’re restless to do more. Our revised National Planning Policy Framework is a crucial next step in supporting the build-to-rent sector, reforming planning rules, and helping to deliver 300,000 homes a year by the mid-2020s.
“This government is backing reform with £4.1bn to fund the roads, schools and medical centres needed to reinforce our local communities, as we build the homes Britain sorely needs.”
Ian Fletcher, director of real estate policy at the British Property Federation, said: “The build-to-rent sector is evolving quickly, with significant delivery in the regions and more houses, rather than just apartments, coming forward. Policy is also adapting, as to date the sector has grown without a planning blueprint. This is now changing. With the draft revised National Planning Policy Framework, local authorities will have to specifically identify how many new rental homes their respective areas need. This has never before been enshrined in UK planning policy.
“Clearly, there are exemplar local authorities across the UK leading the charge, giving build-to-rent a chance to expand in the regions and demonstrate that it can cater for a wider range of people. The sector, however, has significant potential to deliver more professionally managed homes for all renters seeking higher quality service and facilities.”