New report suggests that the purpose-built rental market could accelerate the growth of Britain’s property supply at a time when demand continues to rise.
- Build-to-rent could dramatically increase UK property supply by as much as 240,000 units over the next 13 years
- New developments on prime urban sites could help to revolutionise the rental market in key British cities
- With the country’s tenant population growing to record size, the UK government hopes increased investment in the purpose-built rental market can revolutionise the private rented sector
The huge investment opportunity in the UK’s build-to-rent market could also play a key role in addressing the country’s chronic housing shortage.
A new report produced by the British Property Federation and Savills, in conjunction with the London School of Economics, has revealed that sustained levels of institutional investment could help to deliver 240,000 new properties by 2030.
Building on prime urban sites close to key transport hubs, addressing rising levels of demand for rental accommodation, could result in three times the level of housebuilding seen currently.
Calculating the potential output, the report estimates that if this is achieved on 20% of large sites currently in construction, this works out at an additional delivery of 6%.
164,000 new homes were completed in England in 2015/16. Based on these figures, and current supply delivery targets over the next three years, the increased levels of building could deliver an additional 15,000 units each year.
Ian Fletcher, Director of Policy at the British Property Federation, commented: “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.”
Next month new tax changes come into effect, introduced by the government in an attempt to curb levels of investment in the increasingly outdated buy-to-let sector.
Modern, purpose-built rental properties can deliver the quality and service today’s tenants want, and the level of regulation and professionalism the government hopes will become the standard for the country’s rental sector.