The Build-to-Rent (BtR) sector in the UK has seen slower growth in Q1 2023, with a 9% increase compared to its long-term annual growth rate of 28%, according to the latest analysis from the British Property Federation (BPF) and Savills.
The data shows that the regional BtR market has grown twice as fast as London in the past year, with 186 (49%) of all UK local authorities having BtR in their planning pipeline.
Ian Fletcher, director of policy at BPF, highlighted the importance of BtR in meeting the UK’s housing needs, saying: “Build-to-Rent is a critical part of meeting housing need in the UK and it is positive to see that the sector is continuing to grow in the face of several macroeconomic and sector-wide challenges.
“The planning pipeline continues to be robust, but there is an urgent need to deliver more of those homes, to alleviate pressures on renters. Regional growth in BtR is promising as the sector continues to expand beyond the traditional urban locations to secondary cities and towns.”
Guy Whittaker, asssociate at Savills, commented on the sector’s geographic reach, stating that a quarter of local authorities currently have homes under construction, compared to just 10% in 2017. He added: “The geographical reach of Build-to-Rent has also continued to grow: a quarter of local authorities currently have homes under construction, compared to 10% in 2017.
“This has been supported by the emergence of Single Family Rental which enjoyed a record quarter in Q1 2023, with nearly £500m invested.”
