UK: The Build to Rent (BTR) sector delivered nearly 90,000 new homes across the UK’s largest cities in 2024, accounting for 14 per cent of total housing completions in those areas, according to new analysis from urban policy thinktank Centre for Cities.
The findings, launched at the UK’s Real Estate and Infrastructure Investment Forum (UKREiiF) in Leeds, highlight the growing role BTR is playing in easing Britain’s housing shortage.
In 2004, fewer than 1,000 BTR homes were built annually. Two decades later, the sector’s expansion is helping to address a 4.3 million-unit backlog in new homes.
London dominates the national BTR market, accounting for 44 per cent of the existing stock. Manchester follows at 17 per cent, with Birmingham contributing a further 8 per cent.
Outside of the capital, BTR developments are largely clustered in city centres and nearby neighbourhoods. However, the report suggests there is scope for expanding BTR into suburban locations, particularly those with strong transport links.
While BTR remains a small part of the total national stock, Centre for Cities argues that it could play a bigger role in delivering homes in high-demand urban areas.
To support further growth, the report calls for several policy changes, including the amendment of minimum space standards to allow for the construction of more affordable studio flats, which are currently restricted by regulation despite demand.
The report also encourages local authorities to enable BTR development near suburban transport hubs and manage space in city centres to balance residential and commercial needs.
Andrew Carter, chief executive of Centre for Cities, said: “The Build to Rent category has emerged as a new tool for building more private sector homes in our big cities, a task the UK has struggled with since the Second World War.
“Britain has a backlog of 4.3 million missing homes. Build to Rent is playing an increasing role in addressing this backlog and has the potential to do more.”
Gemma Leonard, head of development at DAC Beachcroft, said: “BTR’s growth over the past two decades has been rapid, now accounting for 14 per cent of housing growth in the UK’s major cities. Young professionals currently make up the majority of tenants, and their positive experience of professionally managed housing – along with the potential need to accommodate growing families – is likely to drive further growth in single-family BTR developments.”
The report also points to improvements in urban living over the last decade as a key driver behind the rising popularity of BTR, especially among young professionals seeking quality rental options.
Highlights:
• BTR sector delivered nearly 90,000 new homes across the UK according to Centre for Cities
• London and Manchester hold over 60 per cent of UK Build to Rent housing stock
• Build to Rent homes account for 14 per cent of new housing in major UK cities
• Centre for Cities urges BTR reform to meet demand for smaller, affordable homes
