UK housing: Build-to-rent can deliver 10,000 new homes a year

UK housing: Build-to-rent can deliver 10,000 new homes a year

As the government addresses Britain’s property shortage, a new report underlines the role build-to-rent can play in increasing the supply of quality homes.


  • Britain’s build-to-rent sector could hold the key to “getting institutions back into the housing market”
  • The purpose-built rental market can help to deliver as many as 10,000 new “good quality, well managed” homes
  • Private rented sector reform played a key role in the UK government’s recently released Housing Whitepaper

Build-to-rent can play a pivotal role in resolving the UK’s “broken housing market”.

That’s the view of a new report which suggests the purpose-built rental sector could deliver as many as 240,000 new homes by 2030.

The report, produced by the British Property Federation (BPF) and Savills in conjunction with the London School of Economics, analyses the progress and potential of the sector, suggesting that build-to-rent developments built on large urban sites can help to accelerate the construction of new properties.

If, for example, just one fifth of the large residential sites currently being built on incorporated build-to-rent, it could increase annual home delivery by 6%. Put into context, this is around 10,000 new homes a year relative to the 164,000 new homes completed in England in 2015/16.

In conjunction with the supply already set for delivery over the next three years, it would take total build-to-rent output to 15,000 new units a year, and to 240,000 over the next 13 years.

The publication of this report comes just days after the government released its Housing Whitepaper, in which it outlined plans to increase the construction of purpose-built rental accommodation for the UK’s growing population of tenants.

Ian Fletcher, Director of Policy at BPF, explained: “By measuring build-to-rent’s growth and the other benefits it delivers, and what gets in its way, we want to show to government the sector can be an important partner to its ambitions to build more homes.”

According to Jacqui Daly, Director of Residential Investment Research and Strategy at Savills, prioritising the build-to-rent sector could trigger increased investment from institutions to help the government achieve overall housing targets.

She said: “There is no doubt that we need to boost house building significantly to address years of undersupply and begin to impact housing affordability.”

“Build-to-rent holds the key to getting institutions back into the housing market and increasing the supply of good quality, well managed homes.”


Investing in Manchester:
Why is Manchester at the heart of the build-to-rent revolution?

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