Build-to-rent sector grows 14% in a year

The number of completed or planned build-to-rent (BTR) developments in the United Kingdom has increased 14% in a year, according to new figures.

New analysis from Savills and the British Property Federation (BPF) shows at the end of September there were 205,525 BTR homes completed or in development pipelines, compared to 180,192 at the end of September 2020.

A total of 63,950 BTR homes have now been built across the UK, with more than a quarter of these completed in the past twelve months.

The research shows BTR homes now account for one in three new home completions in Manchester (34%) and nearly one in four completions in Liverpool (25%). It also reveals eight in 10 BTR homes are in 20 cities identified for additional housing growth by the government.

Ian Fletcher, director of real Estate Policy at BPF said: “The BTR sector continues to grow at pace, and this analysis highlights for the first time the critical role it will play in achieving new national housing targets.”

The government last December increased housing targets by 35% in 20 cities selected for additional growth. The cities are London, Birmingham, Liverpool, Bristol, Manchester, Sheffield, Leeds, Leicester, Coventry, Bradford, Nottingham, Kingston upon Hull, Newcastle upon Tyne, Stoke-on-Trent, Southampton, Plymouth, Derby, Reading, Wolverhampton, and Brighton and Hove.

Annual growth of the UK BTR sector

Source: Savills/BPF

The research shows BTR homes now account for one in three new home completions in Manchester (34%) and nearly one in four completions in Liverpool (25%). It also reveals eight in 10 BTR homes are in 20 cities identified for additional housing growth by the government.

Ian Fletcher, director of real Estate Policy at BPF said: “The BTR sector continues to grow at pace, and this analysis highlights for the first time the critical role it will play in achieving new national housing targets.”

The government last December increase housing targets by 35% in 20 cities selected for additional growth. The cities are London, Birmingham, Liverpool, Bristol, Manchester, Sheffield, Leeds, Leicester, Coventry, Bradford, Nottingham, Kingston upon Hull, Newcastle upon Tyne, Stoke-on-Trent, Southampton, Plymouth, Derby, Reading, Wolverhampton, and Brighton and Hove.

Delivery of Build to rent homes – top ten cities (three years to Q2 2021)