There has been a large increase in applications for permission to develop Build to Rent homes in the UK. Over 45,000 applications are currently under consideration according to the British Property Federation (BPF).
Build to Rent is the term used to describe schemes of purpose-built rental accommodation which is funded by various different institutions. The properties are constructed on their behalf and then let out by an estate agent who manages all aspects of the property.
It’s a relatively new idea which has been developed to meet the needs of “generation rent”, the term used to describe the current generation of prospective homeowners who are struggling to afford a home. As times change, so do values, and with thousands of young people now choosing renting over buying, there needs to be a drastic improvement in the amount of homes on the market. Build to Rent seeks to create modern homes for the modern home owners.
Building Magazine undertook some research into the sector and found that there are currently 45,000 Build to Rent properties waiting in the pipeline, which is a massive 107% increase on the 22,000 applications in October. The number of BTR properties under construction has also nearly doubled to around 14,000.
Following the country’s shocking decision to leave the European Union, many expected the housing market to go under. In actual fact little has changed with build to rent looking set to continue to go from strength to strength, helped by the amount of projects in the pipeline and our new prime minister’s commitment to the Tory promise of building new homes.
Since the beginning of 2016, the Build to Rent sector has received major investments from companies such as Grainger PLC who plan to invest £850m by 2020, Legal & General working with Dutch pension fund PGGM to deliver a £600m Build to Rent investment plan and Greystar Europe Holdings – one of the USA’s biggest housing investors – announcing the acquisition of a 26.5 acre site in Greenford, west London, upon which they plan to build Build to Rent properties.
The Royal Bank of Scotland has also announced a £1 billion funding pledge for the sector.