Delivery of build-to-rent (BTR) accommodation hit a record high at the end of the second quarter 0f 2024, with completion levels hitting 22,000 over the preceding 12-month period, according to new research published by the British Property Federation (BPF).
The research, which was conducted in collaboration with Savills, found that completions are now running at more than two and a half times the average for the 2017-19 period.
Combined with homes under construction or with planning approval, this resulted in year-on-year growth of 4% for the sector, with the regional BTR market now leading London.
However, the research revealed there had been a 19% contraction in the number of new homes currently under construction compared with the numbers recorded in Q2 2023. In London, there are currently 13,200 BTR homes under construction – a 21% fall – with regional construction activity falling by 19% to 32,200.
The total number of BTR homes in planning remains at near record levels with 57,000 new homes in the pipeline and the number of consented homes has risen by 17% compared with Q1 2023.
Ian Fletcher, director of policy at the British Property Federation, said: “The number of built-to-rent homes being completed is now at a record high and the sector is starting to make a demonstrable positive impact on meeting housing need and consumer choice. This, along with the continued steady growth of the sector is testament to the strength of the product, investor appetite, and consumer demand for homes for rent.
“However, more action is needed to convert planning consents to starts on site and bring new schemes forward through the planning process. We need continued growth to service huge rental demand and look forward to working with the new government to make that happen.”
Guy Whittaker, head of UK build-to-rent research at Savills, added: “We have seen exceptional growth in the number of completions in just a single quarter, with a 24% increase over the preceding 12 months. This been led by growth across the regions, with the year-on-year increase being 31% compared to London’s 15%. This means that BTR is making an increasing contribution nationwide to housing supply at a time when others tenure types been struggling.
“It is clear though that more must be done to encourage the number of units under construction to address the -19% decline seen over the past 12 months. This will ensure a steady flow of new homes comes forward to meet demand and meet the wider regenerations benefits of BTR.”
