The number of build-to-rent homes in the UK hit 148,046 in the third quarter of 2019.
This marks a 20% increase on the same period last year, when there were 123,537 BTR homes, according to research by Savills, commissioned by the British Property Federation.
The number of completed homes increased by 31% to 34,840 and the number in planning rose by 23% to 77,446.
The average size of BTR developments is also growing. In Q3 2019, the average number of homes in completed BTR schemes was 133, but this rises to 245 for projects under construction and 325 for schemes in the planning system.
Geographically, BTR growth is consistent across London and the regions, with both seeing total increases of 20%. The number of BTR homes is also similar, at 63,200 in London and 60,337 in the regions. However, in terms of homes completed, the regions saw the biggest increase, with an uplift of 41% in the year to the end of Q3 2019.
Ian Fletcher, director of real estate policy at the BPF, said: “Right across the country we are seeing growth in the sector, allowing people to access high-quality, institutionally managed rental properties.
“With both the Conservatives and Labour prioritising housebuilding at their recent party conferences, our data shows BTR is making an important contribution to housing delivery, and often on difficult-to-develop and large urban sites.”
Jacqui Daly, director at Savills Residential Research, added: “BTR already makes a significant contribution to housing delivery, and we project this will increase to one in five new homes as more and more people rely on renting.
“This will change the housebuilder model, with bulk sales to investors growing their share of housing delivery. In our opinion, in 10 years, the customer lists of housebuilders will see pension funds and life insurers alongside first-time buyers and second steppers.”
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