London’s build-to-rent sector has been outpaced by the rest of the UK for the first time, according to new figures from the British Property Federation (BPF).
Regions outside of London have overtaken the capital in construction of build to rent homes as demand grows for new properties that are built for rental purposes and managed professionally in hotspots such as Manchester, Liverpool and Bristol.
Although the sector largely emerged in outer zones of London, an increasing demand for build-to-rent is coming from areas such as Manchester, with many university graduates staying in the city after finishing their education.
While London had a total number of 62,016 build-to-rent homes completed, under construction or being planned in the second quarter of this year, UK regions recorded 62,021 homes in the same period.
Ian Fletcher, director of Real Estate Policy, British Property Federation, said: “This is a significant landmark moment for build-to-rent, with the sector’s total number of homes across the UK’s regions overtaking London’s total for the first time ever.”
Fletcher added: “Recognition of build-to-rent’s potential to deliver much-needed new, high-quality rental homes is gathering momentum across the country.”
The research, produced by Savills and commissioned by the BPF, also shows that the total number of build-to-rent houses complete, under construction or in planning has risen from 98,723 in the second quarter of 2017 to just over 124,037 in the same period this year.
The build-to-rent sector, which include services such as a 24-hour concierges and broadband as part of the rent, is aimed at mid-market buyers who want a wider package of provisions with their property.
One British property developer announced last year said that it would be offering free Uber rides which were included in the price of the rent.
Source: City A.M.