Build to Rent homes now account for almost 2% of all privately rented properties, climbing to 4.2% in London, market analysis by Foxtons has revealed.
Foxtons analysed annual Build to Rent completions within total market stock since 2018, looking at what proportion of total private rented sector (PRS) stock the sector accounts for, and how this market share has grown over time.
In 2018, Build to Rent completions totalled 31,409, accounting for just 0.6% of the 5.5 million privately rented homes within the lettings sector.
The Build to Rent sector has grown consistently every year since, and in 2020 the number of Build to Rent units found within the rental market sat at 58,844.
At 1.1%, this was the first year the sector accounted for more than 1% of the total PRS.
This number climbed to 100,372 in 2023, meaning that the number of Build to Rent units available to private tenants has increased by 69% since 2013.
In contrast, total PRS stock has increased by just 3% during the same period.
Today, the Build to Rent sector accounts for 1.8% of total private rental market stock – the highest proportion seen since 2018.
This growth in market share was stronger when looking at the London market alone.
In 2018, Build to Rent completions accounted for just 1.8% of the capital’s total PRS stock.
As with the wider UK picture, Build to Rent completions and market share increased consistently every year.
Foxtons found that Build to Rent homes now account for 4.2% of the capital’s PRS stock, with Build to Rent completions having increased by 61% since 2018 alone.
Sarah Tonkinson, managing director of Foxtons Institutional PRS and Build to Rent, said: “We’ve seen phenomenal growth across the Build to Rent sector in recent years, particularly within the London market and, as a result, Build to Rent completions now account for their highest proportion of total PRS stock.
“However, it’s fair to say that the sector still remains in its relative infancy and so the potential for further growth is vast.
“With a move towards longer term renting until later in life, tenants expect more both with respect to the quality of rental accommodation available, and the security and certainty that long tenancy agreements provide them.
“With the Build to Rent sector offering this, and more, we only anticipate demand to increase and for stock levels to follow suit in order to satisfy the evolving needs of renters.”
