Research published by the British Property Federation (BPF) shows that there are 148,046 build-to-rent homes completed, under construction or in planning across the UK.
According to BPF, this figure is a 20% increase compared with the same period last year. In addition, the number of completed build-to-rent units rose by 31% over the same period, to 34,840.
To aid transparency on the build-to-rent sector and its growth, the research has been produced by Savills, commissioned by the BPF, and is published quarterly as an interactive map on the BPF’s website.
The sector continues to improve, with the build-to-rent pipeline growing considerably in the year to Q3 2019. This is highlighted by the number of units in planning, which has increased by 23% to 77,446.
The average size of build-to-rent developments is also growing, indicating the confidence that investors have in the sector.
In Q3 2019, the average size of each completed build-to-rent scheme was 133 units, this increases to 245 units for the schemes under construction, while the average size of schemes in the planning system is higher still at 325 units.
The larger size of build-to-rent schemes underlines its growing importance in increasing the UK residential supply and meeting government house building targets.
Geographically, growth of the sector is spread evenly between London and the regions, with both areas seeing total growth of 20%.
The number of build-to-rent units inside the capital and in the regions is also similar at 63,200 and 60,337 respectively. However, in terms of units completed the regions saw the biggest increase, with a rise of 41% over the year to Q3 2019.
Ian Fletcher, director of real estate policy at the British Property Federation, said: “The build-to-rent sector continues to attract investment and deliver much needed homes. Not only do we have an impressive 31% growth in completions between Q3 2018 and Q3 2019, but the pipeline of new projects is also strengthening.
“With both Labour and the Conservatives prioritising house building during their recent party conferences, our data shows build-to-rent is making an important contribution to housing delivery and often on difficult to develop and large urban sites.”
Jacqui Daly, director, Savills Residential Research, added: “As individual households increasingly cannot afford to access the housing market, particularly once help to buy is withdrawn, so demand for the quality rented homes the sector provides will rise.
“Built-to-rent already makes a significant contribution to housing delivery, and we project this will increase to one in five new homes as more and more people rely on renting.”