Buy To Rent Market Increases By 39% In 2018
The housing market has been privy to a 39% increase in the number of buy-to-rent (BTR) properties being built in the UK between Quarter 4 of 2017 and Quarter 4 of 2018.
According to latest research figures, carried out by the British Property Federation, at the end of 2017, 31,250 homes were built for BTR purposes; this has risen to 43,374 homes in 2018.
The figures have revealed that 139,508 BTR homes are currently being planned, under construction or completed the construction process at the moment.
In 2017, 22,762 BTR homes were completed; this has increased by 29% to 29,416 in 2018.
60,794 properties were being planned for BTR purposes in 2017; this has increased by 10% to 66,794 planned homes in 2018.
As home ownership becomes more difficult, it seems as though schemes that allow the security of ownership are going to become increasingly prevalent in the property market moving forwards.
Ian Fletcher, Director of Estate Policy at the BPF, said: “With the revised NPPF asking local authorities to identify how many new rental homes their respective areas need, the future should remain bright for build-to-rent. This has never before been enshrined in UK planning policy and will only add to the growing number of local authorities that are seeing the benefits of build-to-rent in adding much-needed housing supply across the UK.”
Ashley Mitchell, Partner and Head of Housing at Gowling WLG, commented: “While this is good news for one element of UK housing supply, it underlines a growing dynamic in the market. BTR appeals largely to a generation of professionals who view their home as a consumer product. Home ownership is becoming analogous to car ownership – the value is in the experience, not the investment.”
What will increasing numbers of buy-to-rent properties mean for conveyancers? Will an increase in this property type improve the current property market?