The number of Build to Rent homes completed, under construction or in planning across London has increased by 35% in the past five years, according to the latest research published by the British Property Federation (BPF).
Despite the recent rise in activity, the Build to Rent sector in the capital appears to offer plenty of room for growth.
According to the BPF, prime London’s multi-billion pound Build to Rent sector is forecast to increase by 30% per annum over the next five years.
The study also found that 55% of tenancies in London for rentals priced above £2,500 per week are now in properties owned by either Build to Rent developers or professional investors.
Reflecting on the research, Mark Pollack, co-founding director of Aston Chase, said: “The prime London Build to Rent sector is still in its infancy but has huge growth potential.
“Currently most Build to Rent stock provision has been in outer London and aimed at the starter and middle market, with the luxury sector largely overlooked until recently.
“It is the length of tenancy that build-to-rent investor-developers may be prepared to grant that could give them a strong advantage over privately owned rental property.
“Affluent expats moving to central London are typically looking to secure a property for up to three years, which can be too much of a commitment for a private owner of a single residence who might be renting their home during a temporary change in circumstances.”