BTR pipeline grows by 22% to meet demand
3 years ago | 1 comments
Build to rent is UK’s fastest growing housing sector
9:22 AM, 2nd March 2023, 3 years ago
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Build to rent (BTR) is growing more rapidly than any other housing sector, according to a new report.
The British Property Federation (BPF)’s Build to Rent Q3 2022 report revealed growth of 15% year-on-year, with more than 240,000 homes either in planning, under construction, or completed.
BTR began in urban areas, but regional growth has now surpassed that of London: the BPF’s Build to Rent Q3 2022 statistics show regional BTR growing at almost triple the pace of that in London: 20%, compared to 7%.
Number of households renting privately has increased by 93%
According to the English Housing Survey, the number of households renting privately has increased by 93% in the last 15 years, while the number of owner-occupied households has grown by just 3%.
The surge in renting is not just to do with mortgage rates or the wider economy but is part of a long-term trend among younger generations for more flexibility.
What is the future BTR suburban community?
Andy Jones, group director of corporate lettings and build to rent for Leaders Roman Group said: “BTR has only just celebrated its tenth birthday. But spanning property and service sectors, urban and rural locations and appealing to every demographic group, BTR has already come of age.
“A BTR community offers much more than just a new house. It’s a community in which an individual or family occupies a house, but it could be swapped for another as the family’s needs change.”
He added: “BTR communities tick all the boxes in relation to the government’s aspirations, including sustainability (on multiple levels), ‘building beautiful’ and the concept of the 15-minute neighbourhood.
“BTR suburban communities are also ideally placed to meet future housing needs and deliver on the levelling up agenda.”
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Member Since February 2018 - Comments: 627
11:05 AM, 2nd March 2023, About 3 years ago
The extension of ground rents and leasehold tenure to ordinary houses was rightly vilified as inquitous. Why then does government appear to applaud the extension of BTR which are properties that individuals will “NEVER be able to buy, they are they very essence of the rentier sector and quite unlike the traditional BTL sector of the PRS, they can also be incredibly expensive for tenants, near by there is An English Cities PArtnership development where the two beds are just 60sqm and rent at around £1500 pcm, this building is some 18 years old and you get 80 sqm for that oney and frequently for less, you’ll probably get secure parking too included.
Member Since May 2018 - Comments: 2025
12:59 PM, 2nd March 2023, About 3 years ago
Reply to the comment left by moneymanager at 02/03/2023 – 11:05
I think all the major parties are in denial about this. Where we live building projects designed to create homes for owner occupiers are being stopped because people can’t afford to buy them. I don’t see the point in all the parties introducing legislation to penalise landlords for being landlords when the investment in new homes is apparently being driven by BTL.
Member Since January 2016 - Comments: 236
6:55 PM, 2nd March 2023, About 3 years ago
Lots, damned lies and statistics! If last year I built a house, and this year I built 2 houses, I’ve increased my production by 200% but I’ve still only built 3 houses in 2 years.
There are 120,000 BTR units completed or under construction. Another 120,000 units in planning ie. if it all goes pear shaped for the developers, that number could be a lot less. Given materials costs and labour shortages that could happen easily.
So given the PRS is 4.3m units, BTR represents less than 3% currently, and still only just over 5% if all the planned works is completed. HMG shouldn’t be relying on BTR to sort out the PRS …. but then again, given their astonishing levels of incompetence, maybe they are? Interesting times