BTR completions hit record high

Build-to-rent completions reached 22,000 over the 12 months to the end of June, a record high. Research from the British Property Federation and Savills has found that completions are now running at more than two and a half times the average from 2017 to 2019. Including homes under construction and those with planning approval, year-on-year growth for the sector stands at 4%, with the regional BTR market now ahead of London. That figure brings the total sector pipeline close to 262,000 new homes, with 115,778 having been completed. The number of BTR homes in planning remains at near record levels at 57,000. However, the number of homes under construction fell by a fifth in the second quarter compared with a year earlier to 45,400. The BPF and Savills pinned that drop on build cost inflation and the cost of debt, as well as more general economic and political uncertainty.  Ian Fletcher, the BPF’s director of policy, said: “The number of build-to-rent homes being completed is now at a record high and the sector is starting to make a demonstrable positive impact on meeting housing need and consumer choice. This, along with the continued steady growth of the sector, is testament to the strength of the product, investor appetite and consumer demand for homes for rent. “However, more action is needed to convert planning consents to starts on site and bring new schemes forward through the planning process. We need continued growth to service huge rental demand and look forward to working with the new government to make that happen.” Guy Whittaker, head of UK BTR research at Savills, added: “We have seen exceptional growth in the number of completions in just a single quarter, with a 24% increase over the preceding 12 months. This has been led by growth across the regions, with the year-on-year increase being 31% compared with London’s 15%. “This means that BTR is making an increasing contribution nationwide to housing supply at a time when other tenure types have been struggling. It is clear, though, that more must be done to encourage the number of units under construction to address the 19% decline seen over the past 12 months. This will ensure that a steady flow of new homes comes forward to meet demand and meet the wider regeneration benefits of BTR.”