Analysis published yesterday by the British Property Federation (BPF) reveals that the Build to Rent (BTR) sector pipeline grew by 8% in 2021, with construction in regional cities significantly outpacing London.
The quarterly research, which is undertaken in partnership with Savills, highlights that there are now 70,785 completed BTR units in the UK, a 26% increase year-on-year, with a further 141,215 under construction or at the planning stage, up from 131,190 in 2020.
At Q4 2021 there were 26,820 units under construction across regional cities, marking a 27% increase year-on-year. Over the course of 2021 construction commenced on 13,527 units across regional cities, over three times the total number in London.
Ian Fletcher, director of real estate policy, BPF, commented: “The Build to Rent sector continues to expand rapidly and in 2021 we started to see signs that delivery across the regions is beginning to outpace London.
“Build-to-Rent is not just about increasing housing provision it is a major economic driver, helping attract and retain skilled workers and serving as a catalyst for urban regeneration. The strong growth of the Build-to-Rent sector across the regions will support the Government’s levelling up initiative and help revitalise town and city centres.”
Jacqui Daly, director, residential research at Savills, added: “The geographic spread of Build-to-Rent shows that many more local authorities are beginning to understand the need for new rental stock and planning consents are rising as a consequence.
“At the same time, the Build-to-Rent is becoming hugely competitive for investors, with a record level of capital deployed in the sector in 2021. If investors are able to find markets and stock to invest in, we expect delivery in the sector to double in size within a few years.”