There are now 60,139 Build To Rent units constructed or in the pipeline across the UK according to the British Property Federation.
There are currently 30,844 of these in London – where Build To Rent currently accounts for one in five new housing starts – and 29,295 elsewhere.
Build To Rent is the name given to units purpose-built for the private rental sector with funding from institutions which then go on to professionally manage and let the properties.
The British Property Federation has championed this sector for some years and says despite the recent surge in growth, it continues to face challenges.
“The government’s decision, announced in this year’s Budget, to hit institutionally backed rental property with a three per cent SDLT surcharge is a setback to investment – both directly and through the message it sends to would-be investors” says Duncan Salvesen, chair of the BPF residential board.
He says it is essential that government and local authorities back the sector more vociferously “rather than spook investors any further.”
Salvesen says the BPF intends to build on the London experience where – under former Mayor Boris Johnson – the target of 5,000 Build To Rent homes per year across the capital had been helpful in encouraging local authorities to support the development of covenanted BTR homes and adopt the use of discounted market rent as policy.
“In the coming year we will be engaging with new the Mayor, Sadiq Khan, and his willingness to engage with the industry on his housing policies is a positive starting point – although talk of rent controls has caused concern in the sector” warns the BPF chair.
This map shows current build to rent