According to a new study by the British Property Federation (BPF) the build-to-rent (BTR) sector in the UK property market grew by 11% at the end of Q3 2023 compared to last year, with the number of properties completed or in the pipeline for the build-to-rent sector in 2023 reaching 263,694 – 9.9% (+26,140) higher than the same period for 2022.
The build-to-rent sector in the UK grew by 11% on the previous year at the end of Q3 2023 according to a study by the British Property Federation – in partnership with Savills – with an additional 26,140 properties either completing or entering the BTR pipeline compared to 2022.
The number of completed homes across the UK for the BTR sector reportedly increased by 11% on the previous year to reach 82,660, while the number of apartments currently under construction and within the planning process also increased by 12% to reach 52,852 and 10% to reach 102,042 units respectively.
Across the regional cities in the UK, the activity within the BTR sector remained “relatively robust” according to the BPF, as 60% of all of the completed and ‘in pipeline’ BTR homes in the UK are located outside of the capital.
While the BTR sector outside of London continues to expand and increase in value, the build-to-rent properties within the capital are being met by severe building and financing costs that are having a profound impact on the delivery of large capital-intensive schemes across the city. Just 434 new properties have begun construction over the last three months in London and even fewer (266) in the quarter before.
“There is huge demand for purpose-designed homes … However, there are nearly 60,000 homes with a detailed planning application in the sector suggesting market activity could pick up quickly when conditions are right, but policymakers must recognise more support may be required to sustain the growth of the sector in the short-term.” Ian Fletcher, Policy Director at the British Property Federation.‘‘
The report published by the British Property Foundation has highlighted that 200 local authorities have now consented to build-to-rent developments or at least have some build-to-rent schemes in the pipeline – which is a 100% increase on the number of authorities in the five years previous – underlining the extremely rapid growth of the build-to-rent sector across the UK. The planning pipeline for build-to-rent homes in the UK property market “remains robust” with 57,214 properties having received detailed planning permission, and a further 25,792 properties currently at the detailed application stage.
At Beech Holdings we are no strangers to the demand for build-to-rent properties, with our portfolio of over 1,100 apartments all falling within the build-to-rent sector. With a property pipeline worth over £300m, two schemes currently in planning, and one under construction, we are always looking to not only provide our residents with high-quality homes that meet their needs in the UK’s most in-demand cities but also provide our investors with hassle-free secure assets that will grow their capital as the UK property market continues to increase in value.
To learn more about the build-to-rent sector in the UK and how you can invest in the most in-demand property sector in the country, get in touch with our expert team today or call directly at +44 (0) 161 791 4600.