Build-to-rent fuels 100,000 homes construction boom

Aaron Morby 7 years ago
Share

Build-to-rent projects are igniting a construction boom in major cities across the country as investors pour cash into schemes.

Sir Robert McAlpine has just started work on a 22-storey build to rent scheme in Salford for private rental specialist Grainger
Sir Robert McAlpine has just started work on a 22-storey build to rent scheme in Salford for private rental specialist Grainger

There are now nearly 96,000 build-to-rent homes complete, under construction and in planning, a near 40% jump on the figures for first quarter of this year.

According to research by Savills for the British Property Federation, London leads the expansion with Manchester, Leeds, Liverpool and Birmingham catching up fast.

Taken together the regional cities also now account for a larger pipeline than the Capital, where private rental schemes first took off.

Contractors are also directly joining in the race to supply private rented housing with 19% of planned rooms directly developed by building firms.

Researchers also found the size of build-to-rent schemes is growing, with 34 developments currently in the pipeline providing over 500 new rented homes each – compared to 24 developments at the start of the year.

Ian Fletcher, Director of Real Estate Policy, British Property Federation said that at a time when both central government and the Mayor of London are focused on fixing the UK’s broken housing market, the data shows the build-to-rent sector’s capacity to deliver new homes at speed.

When looking only at the number of build-to-rent homes just under construction and in planning, the rate of growth soars to 45% since the Spring, risen from 54,500 to 79,000.

Build to rent map

With 54,978 homes complete, under construction and in planning, London boasts the highest volume of build-to-rent.

The region are making more progress in green lighting schemes with 12,316 build-to-rent homes currently under construction – compared to 11,696 in London.

Fletcher said: “Correcting the supply-demand imbalance in the UK is fundamental to addressing the housing crisis, and we have demonstrated that build-to-rent has much to offer.

“We are pleased by the Mayor of London’s continued support of the sector and his recognition of its capacity to deliver much-needed homes.

“We look forward to the government’s formal response to the national Housing White Paper, which formally recognised Build-to-Rent in the National Planning Policy Framework. We need all housing tenures to be fully supported by the right policy framework if we are going to reverse the damage caused by years of undersupply.”

Latest news

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
3 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
3 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
3 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
3 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
3 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
3 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
3 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
3 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
4 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
4 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
4 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
4 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
4 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
4 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
5 days ago

Contractors face further insulation board price hikes

Cost of PIR insulation boards set to rise another 10%
5 days ago

Henry Boot wins £36m Rotherham Markets job

Project involves upgrading existing market and building a new library
5 days ago

Keltbray hires new head of infrastructure procurement

Lukasz Olszewski will oversee rail, energy and highways business units
5 days ago

Tunnel fit out robot to revolutionise civils work

Costain and VVB Engineering part of innovative consortium
5 days ago

Funding deal for £86m wind turbine test centre

Latest investment at National Renewable Energy Centre in Blyth
5 days ago

Plan in for Manchester ‘upside-down’ 18-storey tower

Landmark cantilevered NXQ building plan for city Northern Quarter
6 days ago

London 25km Super Sewer hooked up for commissioning

Tideway completes connection to existing Lee Tunnel sewer system
6 days ago

£200m Lincoln ring-road approved

North Hykeham Relief Road granted planning permission
6 days ago

£1bn Manchester Airport City plan rebooted as new sci-tech hub

Plan pivots from offices to science and manufacturing campus, called MIX Manchester
7 days ago

Record results at maintenance specialist Renew

Infrastructure maintenance work continues to pay off for contractor
6 days ago

Barhale lands £21m shaft scheme for Thames Water

Civils specialist bags latest upgrade deal on Thames Water Ring Main
6 days ago

Caddick names new north east director

Former Laing O'Rourke project lead joins Yorkshire contractor
6 days ago

Mount Anvil wins London Camden estate rebuild

Deverloper wins £133m Bacton Phase 2 development in Gospel Oak
7 days ago

London Met Uni seeks firm for £280m estate upgrade

A single partner contractor will deliver 10-year building upgrade plan
7 days ago

Top 30 M&E contractors set for growth – ranking

Growth in data centres and commercial refits creates optimism for year ahead
7 days ago

Contractor services