The British Property Federation says there are now 124,037 Build To Rent homes complete, under construction and in planning across the UK.
While the construction of BTR homes in the regions has outpaced construction in London over the past year, the total number of BTR units in the regions – complete, under construction and in planning collectively – has now surpassed the total number in London.
The BPF says BTR investors and developers wish to build at scale, and its rate of delivery is of course not restricted by the rate of sale, giving it an advantage over traditional volume housebuilders.
“One of the greatest barriers, however, to BTR investment and delivery is finding sites that will allow it to increase the size of its developments” says the federation, although its latest assessment of the sector’s growth suggests that there is a significant increase in the number of schemes for over 500 units in the pipeline.
The BPF also says that BTR is on message with regard the government’s ambitions to move towards three year minimum tenancy lengths in the private rental sector.
In April 2017, the federation gave the government a pledge on behalf of the BTR sector to provide three year tenancies to customers who require it.
“This is a significant landmark moment for BTR with the sector’s total number of homes across the UK’s regions overtaking London’s total for the first time ever. Recognition of BTR’s potential to deliver much-needed new, high-quality rental homes is gathering momentum across the country” says Ian Fletcher, BPF director of real estate policy.
Jacqui Daly – director of Savills residential investment research and strategy, and one of the authors of the latest BPF BTR report – adds: “There is growing evidence that large sites need a range of tenures to speed up build out rates and that BTR should be part of the mix. By bringing in a forward funder, BTR can also help de-risk large schemes, creating an early sense of place as tenants move in, and footfall for on-site amenities.”
Meanwhile M&G Real Estate’s third BTR project of 2018 has been announced – it’s an £82.7m deal with Redrow Homes to acquire 186 new homes at the housebuilder’s Colindale Gardens development in Colindale, north London.
Made on behalf of the M&G UK Residential Property Fund a big player in British BTR, this follows projects around the UK alongside Crest Nicholson, Durkan Homes and Telford Homes.
The latest deal will fund the delivery of one, two and three-bedroom professionally managed BTR homes on the site of a former Metropolitan Police training college, which will see more than 2,900 new homes built over the next 10 years.