According to build-to-rent experts Ascend Properties, the build-to-rent sector in the UK has increased 135%, with it now making up 1% of all rental properties in this country.
The build-to-rent sector has been around for a number of years, but it has never seen growth quite like this…
Past vs present
Only four years ago, there were just 22,831 build-to-rent homes in the UK rental market, making up only 0.4% of private rental stock. The level of build-to-rent stock was greatest in London, with 12,709 properties.
Since then, the build-to-rent sector has grown massively.
Across the UK, build-to-rent now accounts for 53,750 homes within the private rental sector, an increase of 135.4% compared to four years ago.
London has also seen an increase in the volume of build-to-rent properties, with there currently being 26,625 properties, an increase of 109.4%.
Although we previously mentioned a decrease in London rental prices, suggesting a drop in demand, there doesn’t seem to be any slow in the build-to-rent sector in London just yet. This could suggest the decrease observed in London rental prices is only temporary and may begin to rise again in the future – maybe once we’re able to resume a more ‘normal’ life.
Growing rental sector
Research also found that there are currently 2.4 million more people living in the rental sector compared to 10 years ago, a big indicator the sector will continue to grow.
Between 2019 and 2020, there was a drop in sales of residential property of £2.8 billion. Despite there being a global pandemic to contend with, there was also a Stamp Duty Holiday which saw many people fast track their moving plans.
So, why was there a drop in sales? Is this drop suggesting that people are moving away from buying and towards the rental market?
It is also reported that by 2025, purpose-built rented accommodation in the UK will be worth £146 billion, an increase of 67.2%. This is a figure that can’t be ignored and can only be used to assume that the rental sector is only going in one direction, and that is UP – at least for now…
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Millie is a perfectionist with a passion for property and writing articles. You’ll find her researching the latest housing trends and the newest up and coming areas worth investing in. Read more about Millie here.