Build to rent completions set to double by 2025
Build to rent completions are expected to double by 2025, according to Ascend Properties.
Between 2017 and 2018, the number of new build to rent completions reaching the market grew by 1%.
However, between 2018 and 2019, overall new completions rose by 54% on an annual basis.
Excluding build to rent completions, overall new completions rose by just 6% over the same period.
Looking to 2020, the total number of new build to rent completions was 10,158, equating to a 20% decline year-on-year.
Despite this decline, the overall size of the market continues to increase, according to the firm.
Between 2017 and 2018, the cumulative total number of build to rent completions saw the sector grow by 36%.
The build to rent sector then grew by a further 41% between 2018 and 2019.
In 2020, the stock that has reached the market means the build to rent sector has grown by a further 23% cumulatively.
Therefore, Ascend forecasts that a further 73,535 build to rent completions should reach the market by the start of 2025.
In addition to the existing 53,750 build to rent completions already within the market, this forecast could see total build to rent stock hit an estimated 127,285 completions.
Ged McPartlin, managing director of Ascend Properties, said: “The build to rent sector is an increasingly important part of the market, and we see that trend continuing over the next five years.
“There’s a growing recognition that owning property may not be the norm in the future, as is already the case in numerous other European countries.
“In the UK’s most expensive regions such as London, many already rent for far longer than we’ve seen traditionally and while we remain a nation of aspirational homeowners, not everyone is as focussed on realising this aspiration.
“Therefore it’s important that residents are able to live in high-quality properties fit for their needs.
“Build to rent fits this gap perfectly, so it’s no surprise that the sector has seen an impressive level of growth in just a few short years, as well as a notable level of investment.
“We’ve seen a number of big housebuilders and institutional investors shift focus towards the build to rent sector in recent years and it has become an integral part of forward planning where stock delivery is concerned.
“Those yet to realise this are likely to be playing catch up as the sector continues to build momentum in the coming years.”