{"id":6088043,"date":"2022-08-01T08:50:05","date_gmt":"2022-08-01T07:50:05","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=6088043"},"modified":"2022-08-01T08:50:05","modified_gmt":"2022-08-01T07:50:05","slug":"2012-2022-build-to-rent","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/2022\/08\/01\/2012-2022-build-to-rent\/","title":{"rendered":"2012-2022: A decade on, build-to-rent is booming"},"content":{"rendered":"

Ten years since build-to-rent began to take off in the UK, its proliferation has done much to increase supply in the rental sector – and much more is still to come.<\/strong><\/p>\n

The latest research by the British Property Federation<\/a> (BPF) of the country\u2019s build-to-rent<\/a> sector paints a picture that many experts had foreseen several years ago – a sector that has gone from niche to increasingly mainstream with significant growth across the board.<\/span><\/p>\n

Its analysis of the market up to the end of the second quarter 2022 shows a 13% rise in the total number of build-to-rent properties either completed, under construction or in planning – to 237,000.\u00a0<\/span><\/p>\n

While the seeds of the sector were sown in London<\/a>, it has increasingly spread to towns and cities across the country, with record numbers of local authorities (45%) now having build-to-rent developments in the pipeline.<\/span><\/p>\n

Ian Fletcher, director of real estate policy, at the BPF says the space has become a \u201cnationwide phenomenon\u201d since its inception in 2012.<\/span><\/p>\n

Fastest-growing sub-sector<\/strong><\/h4>\n

As a sub-sector of the private rented sector, build-to-rent has attracted huge amounts of interest from developers and investors in recent years. Largely, this has been driven by the changing needs and wants of today\u2019s tenants<\/a>, as their demographic has shifted.<\/span><\/p>\n

Thriving locations, good local amenities and access to jobs, services and infrastructure are all key components of today\u2019s build-to-rent developments, says the BPF, along with green spaces, walking and cycling infrastructure and access to transport.<\/span><\/p>\n

For investors, says the federation, the neighbourhoods around such developments are often linked to investment gains, with a link to maintaining occupancy through additional redevelopment.<\/span><\/p>\n

The new data shows that it is the fastest-growing sub-sector over the past 12 months, showing a 44% increase in the number of homes in the pipeline up to 21,000.\u00a0<\/span><\/p>\n

Breaking it down, there\u2019s been a 16% rise in completed units to 73,739, a 13% rise in units under construction to 47,764, and a 10% rise in units in planning to 115,859. The sector, therefore, shows no signs of slowing.<\/span><\/p>\n

Build-to-rent tackling housing supply<\/h4>\n

In 2015, says the report, just 25% of local authorities included build-to-rent in their future housing supply plans. This increased to 37% in 2021, and 45% in this report.\u00a0<\/span><\/p>\n

Regional cities have seen the biggest gains, with a 16% year-on-year increase in homes completed or underway. In London, which already has by far the most units, this figure was 8%.<\/span><\/p>\n

Ian Fletcher says: \u201cOur analysis for the second quarter of the year further underlines just how rapidly the UK build-to-rent sector is expanding.<\/span><\/p>\n

\u201cWe can see a broader spread and increased presence of BTR across the country, with more local authorities including it in Local Plans and considering it a vital component of future housing supply.\u00a0<\/span><\/p>\n

\u201cThis shows the market maturing beyond London and major regional city centres to towns and suburban locations and BTR becoming very much part of a more diverse and futureproof UK housing market.\u201d<\/span><\/p><\/blockquote>\n

Investing in the sector<\/strong><\/h4>\n

Institutional investors<\/a> are increasingly looking to build-to-rent as a way of diversifying their assets into a growing sector.\u00a0<\/span><\/p>\n

For smaller investors and landlords, buying a property that is specifically designed to be rented out has a number of benefits. They often offer longer tenancies, reducing void periods, while obviously having the added attraction of the amenities for tenants.<\/span><\/p>\n

The build-to-rent model tends to include communal facilities such as resident lounges, gyms and social activities, as well as work spaces – which of course is a major highlight since the pandemic.<\/span><\/p>\n

Jacqui Daly, director of residential investment research at Savills, adds: \u201cWe continue to see strong demand for build-to-rent from investors, who are paying competitively for stock against deep occupier demand in a chronically undersupplied private rented sector.<\/span><\/p>\n

\u201cThe opportunity for developers and investors in single-family build-to-rent is being increasingly widely recognised, with this the fastest growing sub-sector over the past year, with a 44% uplift in the number of homes in the pipeline.<\/span><\/p>\n

\u201cAt the same time, housebuilders are also increasingly looking at single family build-to-rent as an exit, particularly given the looming end of Help to Buy, which itself looks set to boost demand for private rented homes.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Ten years since build-to-rent began to take off in the UK, its proliferation has done much to increase supply in the rental sector – and much more is still to come. The latest research by the British Property Federation (BPF) of the country\u2019s build-to-rent sector paints a picture that many experts had foreseen several years… Read more »<\/a><\/p>\n","protected":false},"author":1069,"featured_media":5025271,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[8,2,59,6],"tags":[38,453],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6088043"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/1069"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=6088043"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/6088043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/5025271"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=6088043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=6088043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=6088043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}