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London’s Build to Rent sector sees 35% growth in five years

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.”

Poll: Do you think the growth potential of UK Build to Rent is huge?

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  • icon

    BPF forgot to mention its aided by subsidies and tax advantages, where as existing LL are taxed to the hilt & penalized. Big Developers want our business, build large numbers or modular Flats which are not very good all packed-in, then sell so many but the ones they keep back are free-be from the Development for them to keep / no purchase costs or huge stamp duty to pay just more unfair competition when compared to existing stock & LL's.

  • Paul Barrett

    BTR essentially means that developers have given up on homebuyers in London on the basis that few can afford to buy so forced to rent.
    Rents can't be afforded.
    Large mortgage payments and deposits are required which cannot be afforded.
    Of course there is always the logical response of moving to where you can afford to buy.
    But if for whatever reason you refuse to do this then you will have to rent.
    Don't imagine however for one moment that BTR rents will be cheaper than your sole trader LL.
    Inevitably as BTR rents are more than private LL such private rents will track those rents so that everyone will be paying more.
    BTR will NOT result in cheaper rents than sole trader LL.
    If the threat of Labour RTB expropriation continues BTR will disappear overnight!!

  • phil dillon

    why is there no reporting by this magazine on all the seminars at the current show. What was discussed about Tax / S24 /

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