In a typical month over 1,000 build to rent homes are now advertised across the country. This equates to around 1% of all the rental homes coming onto the market. Despite their city-centre locations, the facilities they offer have seen them weather multiple lockdowns well. The rents being achieved by build to rent homes have fallen far less than in other city-centre locations.
While London still accounts for just over half of build to rent homes, an increasing number of new schemes are outside the capital. In the first five months of this year, 45% of homes marketed were outside the capital, a record figure. 40% of these were in the North West, predominantly Manchester, and to a lesser extent Liverpool.
The number of new schemes in the pipeline, alongside insatiable tenant appetite, means growth in the immediate future is likely to continue on a similar trajectory. Although it will be set against a backdrop of a private rented sector that remains broadly stable in size. Beyond this, growth rates will be determined by its ability to attract tenants outside of its current core market, perhaps in more suburban locations. While the end of Help to Buy in 2023 may divert some new homes from built to sell into build to rent.