Build to rent project pipeline jumps 22%

Aaron Morby 2 years ago
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The surge in build to rent projects looks set to continue with the number of homes presently in the planning pipeline 22% ahead of last year.

Winvic is starting The Residence build to rent in Edgbaston as rental projects begin to take off around the UK
Winvic is starting The Residence build to rent in Edgbaston as rental projects begin to take off around the UK

Research from the British Property Federation shows the sector remained particularly resilient during the Covid pandemic last year.

The number of completed build-to-rent homes increased by 23% in 2020 with build-to-rent accounting for 4% of all new homes, and around a fifth of all new homes in London, in the final quarter of 2020.

Build to rent continues to accelerate new housing supply outside of London, outstripping the capital in both current and future supply.

But the number of new homes in planning has stabilised in the capital with just a 2% rise as it competes with the regions for investment.

Every region of the UK recorded positive growth in future supply, with the planning pipeline in Northern Ireland increasing the most significantly. The East of England and Scotland ranked second and third, respectively.

With 32,395 build-to-rent homes – complete, under construction or in planning – the North West still boasts the largest number of build-to-rent homes outside of London.

While build-to-rent homes under construction in the North East,  North West and South West slowed in the final quarter significant increases in the number of homes in planning, suggests a healthy future pipeline for the sector in these regions.

Ian Fletcher, Director of Real Estate Policy at the British Property Federation said: “The build-to-rent sector has shown its resilience throughout 2020, with investors continuing to drive the sector’s growth across every region of the UK.

“The quantum of planning applications in London, however, is static – suggesting that the capital is having to compete more for investment.

“Throughout 2020, around one in five homes completed in London have been build-to-rent – in the regions this share is lower, despite the volume of build-to-rent homes in the regions now surpassing London.

“There remains a significant opportunity for the sector to increase its share of completions in our regional cities and towns, further supporting local housing supply ambitions, and this will include more suburban houses that families can call home.”

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