{"id":80452,"date":"2020-08-05T09:42:34","date_gmt":"2020-08-05T08:42:34","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=80452"},"modified":"2020-08-05T09:51:39","modified_gmt":"2020-08-05T08:51:39","slug":"build-to-rent-homes","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/build-to-rent-homes\/80452\/","title":{"rendered":"Build-to-rent homes up 22% on last year"},"content":{"rendered":"

Research shows there are now 167,853 build-to-rent homes complete, under construction or in planning across the UK, a 22% increase against the same period last year<\/h2>\n

The research published by the British Property Federation<\/a> (BPF) found that between Q2 2019 and Q2 2020, the number of completed build-to-rent<\/a> homes rose by 37%, the number under construction decreased by 5% and the number in planning jumped by 27%.<\/p>\n

\"build-to-rent
Total number of build-to-rent homes recorded at the end of Q2 2020 vs Q2 2019<\/figcaption><\/figure>\n

While the sector continues to accelerate new housing supply outside of London, with a rise of 52% in the number of homes in planning in the last 12 months across the regions, future growth in the capital remains more subdued.<\/p>\n

The number of build-to-rent homes in planning in London increased by 4% since the end of Q2 2019.<\/p>\n

\"build-to-rent
Total number of build-to-rent homes recorded at the end of Q2 2020 vs at Q2 2019 in London and the regions<\/figcaption><\/figure>\n

To ensure transparency on the sector and its growth, the research has been produced by Savills<\/a>, commissioned by the BPF, and draws on Molior data in London. It is published quarterly as an interactive map on the BPF\u2019s website.<\/p>\n

The sector is preparing for future growth. The research shows a significant increase in the number of build-to-rent homes in planning compared to a year ago.<\/p>\n

The impacts of Covid-19 on the sector<\/h3>\n

The Covid-19 pandemic<\/a> has halted what had been a strong 2019 and Q1 2020, shown by the steep decline in number of starts and completions from Q1 to Q2 2020.<\/p>\n

In Q1 2020, the sector undertook 4,297 starts and 3,417 completions, but Q2 has seen a sharp decline for both with only 1,827 starts and 1,640 completions.<\/p>\n

While professional investment firms typically finance build to rent and manage the development for the long-term, the research today also shows the breakdown of types of organisation building the new homes.<\/p>\n

Local developers are currently responsible for building 28% of the market. The rest is comprised of UK housebuilders<\/a> (27%), major UK developers (17%), contractors (14%), registered providers (9%) and major international developers (3%).<\/p>\n

Ian Fletcher, director of real estate policy at BPF, said: \u201cOur research shows investor confidence in build to rent housing continues, with a greater commitment from the sector today to delivering new, high-quality rental homes across the UK compared to a year ago.<\/p>\n

\u201cThe build-to-rent sector\u2019s growth will also aid the Prime Minister\u2019s ambitions to \u2018Build Build Build\u2019<\/a>, with valuable construction jobs being created in all parts of the UK, but this requires momentum behind converting planning applications to construction starts.<\/p>\n

\u201cThese decisions however will be on a knife-edge for the next year, as risks rise and productivity remains low as a result of Covid-19, and so the government must ensure its does not take this much-needed new investment for granted, and both our planning and tax systems give confidence to investors to make decisions today for the long-term health of the UK housing market<\/a>.\u201d<\/p>\n

Jacqui Daly, director at Savills residential research, added: \u201cIt will be a while before we fully understand the impact of lockdown on the sector, but it is clear that existing affordability issues, stricter lending criteria and the end of the furlough scheme<\/a> will force aspiring first time buyers to delay buying until the wider economy recovers and underpin demand for secure, well-managed private rented accommodation.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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