The total number of build-to-rent homes completed, under construction and in planning across the UK has increased by 30% in the past year, analysis by the British Property Federation trade body and Savills shows.
In the UK, at the end of the first quarter, there are now 117,893 build-to-rent homes across all stages of the development lifecycle, compared with 90,761 homes at the end of the same period in 2017.
The number of completed build-to-rent homes has increased by 45% between the first quarter of 2017 and 2018 to 20,863.
This figure is even higher for the number of build-to-rent homes under construction, which has increased by 47% to 33,075.
Outside London, the north-west leads with the highest volume of build-to-rent homes completed, under construction and in planning, the data shows.
Ian Fletcher, director of real estate policy at the BPF, said: “The build-to-rent sector is evolving quickly, with significant delivery in the regions and more houses, rather than just apartments, coming forward.
“Policy is also adapting, as to date the sector has grown without a planning blueprint. This is now changing. With the draft revised National Planning Policy Framework, local authorities will now have to specifically identify how many new rental homes their respective areas need. This has never before been enshrined in UK planning policy.
“Clearly, there are exemplar local authorities across the UK leading the charge, giving build-to-rent a chance to expand in the regions and demonstrate that it can cater for a wider range of people. The sector, however, has significant potential to deliver more professionally-managed homes for all renters seeking higher quality service and facilities.”
Housing minister Dominic Rabb said: “The 45% increase in completed build-to-rent homes is good news, but we’re restless to do more.
“Our revised National Planning Policy Framework is a crucial next step in supporting the build-to-rent sector, reforming planning rules, and helping to deliver 300,000 homes a year by the mid 2020s.
“This Government is backing reform with £4.1bn to fund the roads, schools and medical centres needed to reinforce our local communities, as we build the homes Britain sorely needs.”