Introduction
The number of completed Build to Rent (BtR) developments in the UK has increased by 14% in 2021. A new analysis by Savills and the British Property Federation (BPF) shows that at the end of September 2021 there were 205,525 BtR homes completed or in development pipelines, compared to 180,192 at the end of September 2020.
A total of 63,950 BtR homes have been built across the UK, with more than a quarter of them completed in the last twelve months. Research shows that BtR houses now account for one in three new home completions in Manchester (34%) and almost one in four completions in Liverpool (25%). It also reveals that eight out of 10 BtR households are in 20 cities identified for further housing growth by the government.
Annual growth of the UK BtR sector
| Status | Q3 2021 Totals | Q3 2020 Totals | Increase |
| Complete | 63,950 | 50,798 | 26% |
| Under construction | 42,032 | 38,982 | 8% |
| In planning | 99,543 | 90,412 | 10% |
| Total | 205,525 | 180,192 | 14% |
Source: Savills/BPF
Let the competition begin!
Build to Rent (BtR) developments are likely to face intense pressure of competition in the coming year. Build-to-rent has grown significantly over the last four years with many developers now catering exclusively for this part of the rented sector. As the sector continues to prove its strength as the global economy is continually thrown into uncertainty, we can predict with a certain amount of confidence that over the next 12 months the UK BtR sector will continue to grow at this significant rate and thus will become more competitive by nature. From land values to tenant offering, prepare to see the leading BtR companies being more aggressive in their approach to securing and achieving the best developments.
Investment from Europe
Despite Brexit, UK BtR has seen a record-breaking year of European investment in the BtR sector! As the Build to Rent sector continues to grow, we can expect to see more investment from European conglomerates in the UK economy. This investment will help to drive the growth of the sector.
Final thoughts
Build to rent continues to grow in the UK, and a result the sector will be more competitive than ever before in 2022. Build-to-rent has grown so quickly across the country that it’s projected to reach £5 billion by 2022. This is testament to the continued growth of the industry which will continue to drive investment into the UK Build to Rent sector. This will make the most lucrative BtR development opportunities more sought after by a wider array of potential investors as well as increasing the competition for tenants and tenant satisfaction as BtR management look to stamp their USP on this industry in 2022!