The number of new build-to-rent (BTR) homes delivered in the UK in the past year increased by 13%, according to research undertaken by the British Property Federation (BPF) and Savills.
In the past 12 months, 88,100 new BTR homes have been built. The total number of BTR homes completed, under construction or in the planning pipeline rose 12% to 253,402 during the period. The number of homes under construction increased by 9%, with the number of new BTR homes in the design and planning phases increasing by 13% to 111,815.
Single family housing continued to expand strongly with 28,000 units completed or in the pipeline, accounting for 12% of the BTR sector.
However, delivery is expected to slow down over the coming months with construction starts totalling 5,549 units in the first half of the year – down 55% on the same period in 2022.
Ian Fletcher, policy director at the BPF, said: “Build-to-rent is continuing to expand but the sector is not immune to the current economic uncertainty and cost inflation. At the current time it is very challenging to deliver large-scale capital intensive schemes, particularly in London, but there are fewer obstacles to the delivery of smaller developments in regional cities and single-family housing both which continue to grow as a proportion of housing supply in UK cities.”
Jacqui Daly, director, residential research and consultancy at Savills, added: “With interest rates now expected to stay higher for longer demand for new homes for sale is likely to be weaker which will constrain housing delivery.
“Build-to-rent will have a key role to play in maintaining overall housing supply, and in the last quarter we have seen examples of major house builders agreeing to deliver a pipeline of rented homes, which has boosted the pipeline. The continued diversification of the profile of BTR deliverers is critical to its continued growth.”
