According to new research by the British Property Federation, the Build-to-Rent sector has proven particularly resilient during the coronavirus pandemic, with the number of completed build-to-rent homes increasing by 23% from 43,598 in Q4 2019 to 53,750 in Q4 2020.
Last year, Advantage took a look at how the sector was set to hit a record high with every region of the UK recording positive growth in future Build-to-Rent supply.
The North West saw the largest annual increase in the completion of BTR homes
The North West, where Advantage has its headquarters, has the largest number of Build-to-Rent homes outside of the capital. In this region, there are 32,395 homes complete, under construction or in planning. During Q4 2020, the North West also saw the largest annual increase in the number of completed Build-to-Rent homes with a 31% rise on Q4 2019.
Ian Fletcher, director of real estate policy at the British Property Federation, said:
“Throughout 2020, around one in five homes completed in London have been Build-to-Rent – in the regions this share is lower, despite the volume of Build-to-Rent homes in the regions now surpassing London.
“There remains a significant opportunity for the sector to increase its share of completions in our regional cities and towns, further supporting local housing supply ambitions, and this will include more suburban houses that families can call home.”
Room for further growth
Throughout 2020, the Build-to-Rent sector also saw record investment. More Build-to-Rent developments are in the works. And there is still scope for further growth.
Buy Association notes that Build-to-Rent developments often offer communal workspaces and high-speed internet. They suggest that this will be especially enticing for people who continue to work from home even after the pandemic
“As we continue to spend more time than ever before in our homes, the pandemic has brought into sharper focus the need for high-quality housing and a solution to our country’s housing supply-demand imbalance,” Ian Fletcher concludes.
Increasing demand in 2021
Construction Enquirer reported that the surge in Build-to-Rent projects looks set to continue with the number of homes presently in the planning pipeline 22% ahead of last year.
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