BPF study finds the capital is being outstripped by the regions
London is falling significantly behind the rest of the country in terms of the number of homes being built specifically to rent out, although it sees stronger long-term numbers than outlying areas.
New research from the British Property Federation (BPF) revealed that the number of build-to-rent homes currently under construction across the UK’s regions was two thirds higher than in London.
Despite this finding, the study, undertaken by Savills and commissioned by the BPF, showed London continued to see the strongest longer-term figures, with 38,648 Build-to-Rent homes either complete, under construction or in planning, versus 31,176 in the regions.
The BPF said the sector – purpose-built, professionally0managed rented homes – was experiencing a surge of activity across the UK, with Manchester and Salford collectively boasting the largest number of new rented homes under construction outside London: more than 5,500.
The BPF said investors spearheading the nascent sector had found achieving scale to be a “significant challenge”.
It went on: “While there is room for major improvement, the research shows that the size of build-to-rent developments is generally getting larger. Twenty-four developments currently in planning will deliver over 500 new rented homes each, whereas completed developments up until now have mostly delivered under 100 homes each.”
Andrew Stanford, head of UK residential at LaSalle Investment Management and chairman of the BPF’s build-to-rent committee said the federation’s analysis was encouraging since it demonstrated that “high quality, fit-for-purpose build-to-rent schemes are no longer a rarity across the UK.
“Options for investors have noticeably increased across the country for those willing to be involved in the development process. This bodes well for the rapidly maturing sector.”
Meanwhile another survey found that one in four Londoners were unhappy with the home they lived in, with 35% of private renters being the most dissatisfied
The WSP poll of 1,000 people living in the capital, revealed that three quarters (75%) agreed with the statement “I am happy with the home I live in”, 24% disagreed, with a further 1% saying, perhaps somewhat bizarrely, that they “don’t know”.