Saturday, February 24, 2024

Number of UK BTR properties increases by 33%

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The total number of build-to-rent properties across the UK has increased by 33 per cent year-on-year, according to British Property Federation

The total number of build-to-rent or BTR properties across the UK has increased by 33 per cent year-on-year, according to British Property Federation. Excluding London, the total number of build-to-rent properties increased by 51 per cent on an annual basis.

This rise in the number of build-to-rent properties has been attributed to under-performance of the traditional asset classes, which has driven investors to professionally-managed rental housing as it offers a stable income over the long term.

Data collected by the trade body shows that the number of completions rose from 30,312 in 2018, to 40,181 in 2019

On a regional basis, Birmingham ranked first in terms of the number of build-to-rent completions, with the number of BTR completions rising from 4,891 in 2018, to 8,069 in 2019.

There are currently 152,071 build-to-rent homes at various stages of completion across the UK, including the 40,181 completions, added the trade body. There are 35,415 build-to-rent properties under construction and 75,475 in planning, which represents a 15 per cent rise over the year.

Real estate investment company, Apache Capital Partners co-founder and managing director Richard Jackson says that given the wider investment landscape and the state of the traditional private rented sector in the UK, it is no surprise that build-to-rent continues to attract interest from both investors and consumers.

Jackson said that the under-performance of traditional investments such as sovereign bonds have encouraged institutional investors such as pension funds and insurers to look at emerging asset classes like build-to-rent for long-term steady income streams to match their liabilities.

Flatfair founder and chief executive Franz Doerr adds that these figures show the demand for professionally managed rental housing that makes the entire experience seamless.

He said that as people rent for longer periods there will be an increased focus on service and build-to-rent housing is leading the way. As more units come online, service will be the differentiating factor between developments, and those that embrace the technological solutions that make things easier for tenants will thrive.

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