Not so long ago the idea of corporate investment in private rented housing was a curiosity: everyone said it should be a good thing, but nobody seemed able to make it a mainstream proposition.
Now, however, Build to Rent appears to have become a steady contributor to London’s house-building industry.
With BTR buyers and builders doing their bit, it would not surprise us if the investors who have staked both their funds on the sector will now be focused on the management and lettings end of the equation. Managing agents say that the main challenge is currently that newly completed BTR developments are having to compete with very high stock availability in the wider market.
During the first three quarters of 2017:
- 3,300 BTR units started construction,
- 2,300 BTR units completed,
- 4,100 units were sold to the BTR sector,
- BTR accounts for 23% of all new homes sold in London during 2017 so far, compared to 26% during both 2016 and 2015.
At the end of September 2017:
- 10,900 BTR units were under construction in London.
- This is 17% of all new homes under way in the capital, compared to 17% and 16% at the ends of 2016 and 2015 respectively.
- 22% of these are programmed to complete the second half of 2018.
Average BTR rents across all of London are as follows:
- Studios: £1,110 per month
- 1-beds: £1,410 per month
- 2-beds: £1,730 per month
- 3-beds : £2,500 per month
The average let-up rate during the first three quarters of 2017 was 12 units per month per scheme, compared to 18 in 2016, 25 in 2015 and 24 in 2014.