Build to Rent Numbers Jump 22%
Latest research shows a significant increase in the number of Build-To-Rent (BTR) homes completed, under construction or in planning over the past year. At 139,508 units, this represents a 22% increase according to research published and produced by Savills for the British Property Federation (BPF).
The fastest growth was in the volume of BTR homes under construction, which is up 39% year-on-year. The number of completed homes is also up sharply, by 29%, with the number in planning up by 10%.
This growth is also not just being seen in London, with the total number of completed BTR units across UK regions now comparable with the total in London. The research also suggests this pattern is set to continue as the number of units under construction in the regions exceeds the volume in London. Allowing for regional variations, a critical mass of around 250 units or more is often seen as ideal to guarantee a return on investment, whether in one building or multiple buildings. This ideal unit size is certainly one factor as to why the research also found that just 9% of the future pipeline of BTR developments in London is coming forward under permitted development rights.
One such scheme that is contributing to the growth of BTR units in the regions is East Street, Southampton. Rund Partnership is appointed by Grainger plc as project monitor on this 132 unit BTR scheme in Southampton city centre. The scheme is a joint venture between Grainger plc and APG (a private rented sector investment vehicle), who are forward funding and acquiring the completed project from the developer, National Regional Property Group.
Our expertise in the BTR sector is being utilised by investors and developers on tailoring their BTR developments and multi-family living initiatives for local markets across the UK regions.