After an uninspiring Q1 2017, the headline numbers suggest that build to rent development activity resumed with greater vigour in Q2.
Whether you count deliberate BTR construction starts or ‘sales’ of housebuilders’ units into the sector, activity levels in Q2 were broadly comparable to those seen in 2016.
Meanwhile, BTR construction completions dropped slightly in Q2 2017 compared to Q1, but they are still higher than any BTR quarterly completion figures seen before 2016.
- 9,400 BTR units are under construction across London, which is 15% of all private housebuilding underway.
- 1,000 BTR units started during Q2 2017, compared to just 260 in Q1.
- 840 BTR units completed during Q2 2017.
- In total 11,000 BTR units have completed in London since 2009.
- 1,100 private units were committed to London’s BTR sector during Q2 2017, including bulk deals and in-house construction starts.
- BTR accounted for 20% of new homes sold in London during Q2 2017.
- This is up from 13% during Q1 2017, but down from 25% in 2016 as a whole.
- 68% of BTR sales in the first half of 2017 were agreed before construction start - i.e. construction has commenced with BTR in mind in these cases.
Average gross rents in completed BTR developments across London are as follows:
- Studios: £1,110 per month
- 1-beds: £1,390 per month
- 2-beds: £1,700 per month
- 3-beds: £2,430 per month