Surge In The Build-To-Rent Sector: What Is Happening?

build-to-rent

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.

About Millie Archer 115 Articles
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.

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