A new report from the British Property Federation and real estate firm Savills suggests that Build to Rent is now prominent in the UK housing sector.
The investigation indicates that this scheme could deliver 240,000 homes by 2030.
Acknowledging that Build to Rent’s ability to increase the amount of homes will be prominent in the Government’s White Paper, which was released this week.
The report looks at the progress of the sector, alongside looking at its potential. Overall, it concludes that on large urban sites, Build to Rent can motor house building three fold.
Data was produced in conjunction with the London School of Economics and explains that if this can be achieved in just 20% of sites currently being built, supply will increase by 6%.
Comparing this to the 164,000 new homes completed in England during 2015.16, this equates to 10,000 homes per year.
Of paramount importance to the future of the sector, the report suggests, is better recognition of planning. It calls for a preferred planning approach, with a better definition of what Build to Rent is and acceptance that discounted market rent could work better than other types of affordable housing.
Ian Fletcher, director of policy at the British Property Federation, noted: ‘Build to Rent is a relatively new phenomenon in the UK, but already has a significant development pipeline, which will see it deliver thousands of homes over this Parliament. By measuring Build to Rent’s growth and the other benefits it delivers and what gets in its way, we want to show to Government the sector can be an important partner to its ambitions to build more homes, on this most important of days for housing policy.’
Jacqui Daly, director of Savills residential investment research and strategy, also said: ‘There is no doubt that we need to boost house building significantly to address years of undersupply and begin to impact housing affordability. Build to Rent holds the key to getting institutions back into the housing market and increasing the supply of good quality, well-managed homes.’
‘We hope that this report will give local authorities a deeper understanding of the benefits of Build to Rent and the tools they need to have a meaningful dialogue with developers and housebuilders and thereby secure long term institutional funding.’