The true scale of the build-to-rent market has been revealed in a new report showing that about 40,000 private rented sector (PRS) homes are in the planning pipeline
The British Property Federation (BPF) study said a further 16,506 units were under construction in the first quarter of this year, with 10,244 of those being built outside London.
According to the BPF’s report, more than 22,000 PRS homes across the country had detailed planning permission, with thousands more at outline permission stage or in pre-planning.
London’s PRS pipeline received a boost earlier this year when developer Quintain announced plans to boost the number of build-to-rent homes at its Wembley Park site.
The developer revealed that of the 6,955 homes planned at the site, almost 5,000 would be PRS.
Meanwhile, architecture practice Falconer Chester Hall and developer Anwyl Construction this month received the green light for a 336-home PRS scheme in the Pall Mall area of Liverpool.
And this week developer Peel also submitted plans for £21 million Hodder + Partners-designed build-to-rent scheme as part of its ongoing £5.5 billion Liverpool Waters development.
BPF director of real estate policy Ian Fletcher said: ‘While the government now better recognises that we need a housing sector firing on all cylinders across the UK, our data is a timely reminder of build-to-rent’s contribution to solving the housing crisis.
‘This research will further professionalise the sector, ensure it is transparent and allow us to track its growth at a time when housing is at the top of the government’s agenda.’
Andrew Stanford, head of UK Residential at LaSalle Investment Management and chairman of the BPF’s Build-to-Rent Committee, added: ‘An ability to invest at scale was cited as a key barrier to the growth of the build-to-rent sector by the Montague Review in 2012.
‘The BPF’s analysis is encouraging because it demonstrates that high-quality, fit-for-purpose build-to-rent schemes are no longer a rarity across the UK. Options for investors have noticeably increased across the country for those willing to be involved in the development process. This bodes well for the rapidly maturing sector.’
Falconer Chester Hall and developer Anwyl Construction’s recently approved 336-home PRS scheme in the Pall Mall area of Liverpool.