The number of Build-to-Rent (BTR) properties in the market could rise fivefold and reach a total of 380,000 over the next decade according to new research from Savills and the British Property Federation (BPF), with the sector’s value increasing to £170 bn.
New research from property agent Savills and trade organisation the British Property Federation has outlined a long-term projection for the sector this week, with the BTR sector projected to increase in value to £170 bn and total 380,000 properties in the sector by 2032 – making 8% of UK properties available to rent part of the purpose-built sector, up from the 1.5% it stands at today. The research also stated that currently £30 bn has been invested into the BTR sector to date, delivering a total of 76,800 completed properties while a further 163,400 are in the planning and delivery pipeline.
The total number of UK Build-to-Rent properties that are currently in the planning stage, under construction, or reached completion was reportedly up by +15% between Q3 2021 and Q3 2022 – increasing from 209,313 to 240,202 in just one year. Analysis from the BPF also claims that the BTR sector continues to expand across the UK, with regions across the country experiencing a +22% increase year on year in the number of BTR homes currently under construction.
“The current market conditions underline that we must continue to diversify housing supply in order to drive economic growth, and the government must continue to look at how planning reform, more support for local authorities and the release of land for development can enable the sector to continue its upward trajectory.” Ian Fletcher, BPF’s Director of Policy.‘‘’’
The robust pipeline of BTR homes in the sector totals 113,536 properties currently going through planning – a +15% increase on the previous year, which the BPF’s research states points to the long-term prospects of the sector as rental demand across the UK is at an all-time high.
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