The number of new Build-to-Rent (BTR) units completed last year grew by nearly a third to 30,000 and is no longer just a London phenomenon, research by Savills has revealed.
In total there are currently 43,400 BTR units under construction in the UK, a nearly 40% increase compared to 12 months ago.
Savills says the key regional BTR hubs are in Birmingham, Leeds and Manchester and that frenzied activity within them will push the number of new BTR units under construction in the regions this year to 24,000, some 5,000 more than in London.
In Salford in Manchester BTR now represents 7% of all housing stock.
“This rapid growth highlights the momentum of the sector which continues to attract significant investment from both overseas and domestic institutional investors,” says Guy Whittaker, Savills’ residential Research Analyst.
The size of Build-to-Rent schemes is increasing too, jumping from an average size of 133 units now to 240 for the schemes currently under construction.
BTR builders Get Living and Criterion capital are building the largest developments with an average size of 700 units.
But one investor, Apache Capital/Moda Living, is building a 1,000-unit BTR development in Leeds at the moment.
Twelve landlords have pipelines of more than 2,000 units including Quintain, L&Q, Sigma Capital and Get Living.
“There has consistently been in excess of 30,000 units in the pipeline with detailed permission since July 2016. This constant supply has allowed the number of BTR units currently under construction to rise rapidly,” says Savills.
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