In total, there are now 60,139 build-to-rent units in construction or in the pipeline across Britain, the British Property Federation revealed.
Currently, 30,844 of them are located in London, accounting for one in five new housing starts, whilst the remaining 29,295 units are spread across the country.
Build-to-rent defines those units that are purpose-built for the private rental sector through funding from institutions, which will then go on to be professionally managed and let.
The British Property Federation has been one of the frontrunners in this area for some years and explained that – despite the recent growth – the sector still faces some difficulties.
“The government’s decision, announced in this year’s Budget, to hit institutionally backed rental property with a three per cent SDLT surcharge is a setback to investment – both directly and through the message it sends to would-be investors” says Duncan Salvesen, chair of the BPF residential board.
For Salvesen, it’s essential that the Government and local authorities back the sector rather than “spook investors any further”.
“In the coming year we will be engaging with new the Mayor, Sadiq Khan, and his willingness to engage with the industry on his housing policies is a positive starting point – although talk of rent controls has caused concern in the sector” warns the BPF chair.