The number of Build to Rent homes under construction across the UK’s regions is nearly double that to London, says research from the British Property Federation (BPF).
The sector – featuring purpose-built, professionally managed rented homes – is currently experiencing a boost in activity across the UK, with Manchester and Salford collectively home to the most new rented homes under construction outside of London.
According to the BPF, this shows the first evidence of momentum for the Build to Rent sector outside the capital, which recently received proposed recognition in the National Planning Policy Framework, set out in the government’s Housing White Paper.
The BPF said that the real estate industry has welcomed the government support, which, it added, should ensure that local authorities can better prepare for Build to Rent in their local plans.
Although the regions are performing well, the research has shown that London continues to see the strongest long-term figures, with 38,648 Build to Rent homes either complete, under construction or in planning, compared to 31,176 in the regions.
Investors driving the sector have found that achieving scale is a significant challenge, said the BPF. Its research has revealed that although there is room for real improvement, Build to Rent developments are typically increasing in size.
The BPF added that a total of 24 developments currently in planning are set to deliver more than 500 new rented homes each, compared to completed developments, which, up until now, have mostly delivered under 100 homes each.
Ian Fletcher, director of real estate policy at the BPF, said: “While the government now better recognises that we need a housing sector firing on all cylinders across the UK, our data is a timely reminder of Build to Rent’s contribution to solving the housing crisis.
“This research will further professionalise the sector, ensure it is transparent and allow us to track its growth at a time when housing is at the top of government’s agenda.”