LREF 2017: Building the future with build-to-rent?

There are many reasons for the growth in the build-to-rent market in recent years, the shortfall in social housing delivery is one of the most significant. At the end of 2016 there were more than 29,000 new-build unit starts in the capital, one of the highest we at LRR have ever seen. The number of social starts, however, over the same period was some 8,600 units, one of the lowest we have ever recorded, representing a shortfall of 12,500 social units from what we might expect. In the years preceding 2012 there was a fairly predictable relationship between the number of private and social starts. However, that relationship broke down post-2012 with the gap between the expected number of social units and the actual amount delivered increasing year-on-year up to 2015, with only a moderate drop in 2016. As stated, the difference between expected and actual delivery of social units in 2016 was 12,500 units but the cumulative shortfall between 2012 and 2016 was 44,000 units. So the bottom line – we are building fewer and fewer affordable homes in the capital, fewer and fewer opportunities to staircase to full ownership, which could lead to a harsh reality where, for a generation of Londoners, home ownership will simply not be an option. And if you can’t buy you rent.   ■ Click here to read the latest news from LREF