Since its inception over a decade ago, the UK Build to Rent scheme has continued to show great potential as a sustainable form of investment. The housing scheme has significantly increased the supply of new housing in the UK, meeting the increasing demand for rentable housing.
How Build to Rent Has Grown Over the Last Five Years in London
In the last five years, we have witnessed the exponential growth of the BTR sector. Especially in London, the UK BTR hotspot. London’s strong office market has drawn a massive investment into the BTR scheme. According to Molior’s Q4 2020 Build to Rent update, the top UK BTR companies all have BTR schemes clustered around London’s TFL zones (Travel Fare Zones). In other to meet the high demand for rentable housing by young professionals in the city.
Also, the London BTR market is driving the housing industry towards embracing sustainable technologies and practices. With some London BTR schemes incorporating laudable sustainable technologies and practices – in the last five years. For instance, in 2017, Essential Living announced plans of constructing the UK’s first modular Build to Rent scheme in Greenwich, known as the Union Wharf.
How London’s BTR Market Is Set to Grow Over the Next Ten Years.
The first indication is BTR’s resilience against the economic cycles, especially London’s BTR. Even when faced with the unexpected coronavirus pandemic that set off a global economic downturn, the BTR sector remained sturdy. A boom in the volume of investments in London’s BTR sector is anticipated, judging from the economic resilience of the investment scheme. Experts like Savills have hinted at the investment boom, as more investors are looking to benefit from the strong London housing market.
The second indication is the sector’s property technology integration. Although it has been on the rise for the last decade, it is suspected to hit record highs in the coming years. The convenience provided by the property is not only for the tenants’ benefit but the building management with the incorporation of BMS (Building Management System), BIM (Building Information Modelling), and more.
Lastly, sustainability in the BTR sector in London is expected to be one of the principal focuses in the coming decade. To meet the global sustainability target (Net-Zero) by 2050. Also, with the increasing awareness for environmental responsibility in the coming generations, BTR investors are advised to stay ahead of the curve by providing sustainable homes. A survey conducted by NMHC indicated that millennials are willing to pay an extra $32.64 a month to live buildings that have earned a green building certification.
Today We Look at London’s Busiest Boroughs for BTR Development
Of the 33 London Boroughs, we would be ranking each borough based on the number of BTR schemes they have completed, in construction, or planning.
Newham Borough
Newham tops the list with a total number of 51 BTR schemes in the various status of permission, planning, construction, and completion. With Get Living and Notting Hill Genesis BTR companies owning the majority of the schemes. Currently, Newham Borough has a combined number of 11,472 BTR units.
Brent Borough
This is the London borough with the second-largest concentration of BTR schemes. Brent has 35 BTR schemes, in various development stages and is owned by different BTR companies. The collective number of the BTR units in Brent stands at 8,631.
Tower Hamlet Borough
Coming in close as third is Tower Hamlet with a total number of 34 BTR schemes. The schemes are also in various stages of permission, planning, construction, and completion. The 34 BTR schemes combined provide Tower Hamlet borough with 5,615 BTR units.
Ealing Borough
Fourth on the list is Ealing, with 29 BTR schemes scattered across the borough and owned by several BTR companies. The schemes are also in various stages of permission, planning, construction, and completion. With 29 BTR schemes, the borough has a total number of 4,225 BTR units
Croydon Borough
Corydon is fifth on the list, with also 29 BTR schemes spread across the borough. The BTR schemes owned by various companies are in various development stages of permission, planning, construction, and completion. Currently, Corydon borough has a combined number of 3,753 BTR units.
Hounslow Borough
At sixth on the list is Hounslow having a total number of 25 BTR schemes spread across the borough. The schemes are in different stages of development of permission, planning, construction, and completion and are run by different BTR companies. With just 25 BTR schemes the borough has 2,566 BTR units.
Barnet Borough
Barnet borough comes seventh on the list with a 24 BTR scheme owned by different BTR companies. The schemes are in various stages of permission, planning, construction, and completion. Currently, the BTR schemes in Barnet make up a staggering total of 5,497 BTR units.
Harrow Borough
Eight on the list is Harrow, with a total of 23 BTR schemes with the borough. The schemes are in various stages of permission, planning, construction, and completion and are run by different BTR companies. With just 23 BTR schemes Harrow borough has 1,546 BTR units.
Southwark Borough
Coming ninth on the list is Southwark, with a total number of 22 BTR schemes within the borough. The schemes are in various development stages of permission, planning, construction, and completion. Currently, Southwark has 5,388 BTR units.
Barking & Dagenham Borough
In tenth place is Barking & Dagenham, with 19 BTR schemes spread across the borough. The schemes are owned by different BTR companies and are in various stages of permission, planning, construction, and completion. Currently, the borough has a combined number of 4,684 BTR units.
Conclusion
The growth of UK BTR from all indications is predicted to be exponential through the next decade. London, being the hotspot for BTR schemes continues to show promise for more, and as its boroughs get busier so does the demand for BTR increases.
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