The most recent rental sector perception by rental platform, Rentd, has revealed that the proportion of new-build completions coming by way of the build-to-rent sector has grown within the final yr, now accounting for over 7% of all new houses reaching the market.
Rentd analysed whole new-build completions over the past yr, what stage of those completions are attributed to the quickly rising build-to-rent sector and the way this has modified yr on yr.
Construct-to-rent has turn out to be an growing focus of the new-build sector, delivering prime quality developments designed with long-term renting in thoughts.
Final yr, 7,123 new rental houses got here by way of the build-to-rent sector, a 25% uplift on the amount of build-to-rent completions seen in 2020. This progress is a few 7% greater than the rise seen in whole new-build completions throughout the identical interval.
In consequence, build-to-rent completions accounted for 7.2% of all new-build houses delivered final yr, up from 6.8% the earlier yr.
Nevertheless, the sector’s impression has been far larger in London. The 21,000 new houses delivered within the capital in 2021 account for simply 10% of the UK whole. The 7,123 build-to-rent completions, then again, account for simply shy of half (48%) of the nationwide whole.
In consequence, build-to-rent completions accounted for 34% of all new-build supply throughout London in 2021, with this market share growing from 29.2% the yr earlier than.
This progress has been extra muted elsewhere across the UK, with build-to-rent market share growing from 4.1% to 4.2% between 2020 and 2021.
Founder and CEO of Rentd, Ahmed Gamal, commented:
“The brand new-build sector has developed to ship extra than simply bricks and mortar, with the approach to life providing supplied by new-build developments turning into as pivotal to their enchantment because the property itself.
So it’s hardly shocking that this deal with higher high quality residing to go well with the fashionable resident has transferred so properly to the rental sector and, the truth is, it’s extra shocking that it’s taken so lengthy to occur.
Regardless of its relative infancy, the build-to-rent sector has grown quickly and there’s little question it’ll proceed to take action over the approaching years, because it turns into a larger space of focus for the nation’s housebuilders.
In fact, we stay a nation of aspirational homebuyers and so whereas extra of us are selecting to hire till later in life, we’re unlikely to see build-to-rent eradicate this urge for food to personal our personal houses solely. However the sector does present a improbable various for the smaller proportion of the inhabitants preferring the pliability and simpler freedom of motion that renting can present.”