The drastic shortage of rental properties will lessen during 2023 thanks to the suburban Build to Rent sector, according to Leaders Romans Group.

Figures recently published by Zoopla showed demand for rental homes is at its highest level in over a decade and is exacerbated by a lack of supply – the number of homes available to rent is 38% below the five-year average, while rental enquiries are 46% above average.

However, LRG – which recently published a white paper called BTR suburban communities: the next stage in the evolution of Build to Rent – believes suburban BTR will provide the solution that the market so desperately needs.

Andy Jones, group director, corporate lettings & BTR at LRG, commented: “BTR suburban communities provide desirable rental properties in attractive, well-serviced communities, offering growing families considerable flexibility and a wide range of options for a stress-free lifestyle.

“This new format allows an individual or family to occupy a house which can be made their own – but could be swapped for another as their needs change, with each move being free from the complications of buying and selling.

“Typically a BTR suburban community offers 24/7 security, all-inclusive bills, extensive facilities and a range of additional services such as cleaning, gardening and even dog-walking. Some are powered by district heating systems, using clean, renewable energy. This is undoubtedly the division of the property sector in which we will see the greatest growth over the next decade.”

Research by the BPF shows the number of BTR units in the UK will rise from 76,800 to over 380,000 in the next 10 years, with the majority being outside the major cities. The BPF analysis showed a 15% increase in BTR homes either in planning, under construction or completed between Q3 2021 and Q3 2022, from 209,313 to 240,202.

“We have been warned that 2023 will be a difficult year financially,” said Jones. “But this pipeline is excellent news because it has considerable potential to address the shortage of properties available and will significantly increase the choice available in the rental market.”