Savills has claimed that there will be 1.75 million PRS properties provided by the build-to-rent (BTR) sector in ten years’ time.
This is quite a claim and points to a substantial future acceleration of new homes coming on to the market.
The estate agency’s own research shows that the UK’s BTR stock currently includes 57,700 completed homes with a further 36,000 homes under construction.
But even when factoring in the known future pipeline, at 94,700 homes, including those in the pre-application stage, this only brings the total size of the sector to 188,500 homes, once built.
Savills, which is also a BTR consultant to several large operators within the market, says that many investors are now switching their attention away from other types of assets including more traditional but difficult-to-manage traditional rental properties.
It also reveals that more than £1.2 billion was invested into UK BTR projects during the first three months of the year, the highest first quarter on record.
Two large portfolio deals helped begin the year including in January when QuadReal completed their acquisition of Project Harmony which includes six BTR properties with some 1,000 homes for rent.
Also, Goldman Sachs completed its purchase of Project Thistle which comprises more than 900 suburban homes in the North West.
“We expect that once the economic picture improves, starts will pick up again and the construction pipeline will return to growth, especially given the weight of consented homes ready to start,” its latest BTR report says.