The Build-to-Rent sector is young, but it’s growing - and we’re excited. We live in an era of generation rent, and at Movebubble we know what renters want – modern living experiences and flexible tenancies.
Can’t buy or won’t buy? Property prices are high leaving some renters struggling to save for mortgage deposits. They’re forced to rent. But others prefer the flexibility of renting – I need to move because of work, let’s go. And do they want to buy their own home? No thanks. So, what does this mean? We need even more rental properties that match their modern lifestyles.
The private rented sector will rise to 22% by 2023 – and that’s huge potential for growth. It’s also attractive for investors and offers long-term and stable income streams, while supporting our housing crisis.
Landlords are also turning away from the buy to let market. Tax and regulation changes are taking effect, so there are opportunities to fill the gap. The Government’s Build-to-Rent fund and the winding down of the Help to Buy scheme by 2023 are also paving the way for even more growth.
At Movebubble we know Build-to-Rent will continue to grow. We know renters have different needs. We know age plays its part – and we can sum it up. People in their 20’s want modern living solutions, flexible tenancies and convenience. Laundry service anyone? And if you’re between 35-49, you make up the biggest share of renters. And it's a yes to onsite amenities, on demand services and extra benefits.
How much growth have we seen?
We’re thrilled by how much the industry has grown. And the numbers speak for themselves. As of September 2019, there are 148,046 Build-to-Rent homes across the country, according to The British Property Federation (BPF). And we’ve seen an extra 24,509 homes built compared to the previous year – a whopping 20% rise.
And the growth doesn’t stop here. Build-to-Rent homes in all development stages were up – and that’s worth shouting about. Let’s look at some stats from October 2018 to September 2019:
- There’s a 23% rise of homes in the planning stage (from 62,939-77,446).
- There’s a 5% increase of homes under construction (from 33,965-35,760).
- There’s a massive 31% uplift of completed homes (from 26,633-34,840).
There’s also an increase in the average number of homes within projects. Savills’ Build-to-Rent market update shows a rise from 133 to 325 homes. We’re excited to see larger size Build-to-Rent projects. It’s creating more homes for our modern-day renters who want high quality, community focused and professionally managed properties. Where’s the onsite property manager?
It’s also great to see so many Build-to-Rent homes in London – 63,300 to be exact. But we’re as pleased to see the high number outside the Capital – standing at 60,337 homes. And even though key cities such as Birmingham, Liverpool and Leeds have Build-to-Rent homes, we’re excited to see activity in smaller urban areas. Urban renters want more options too.
So, where’s this all going?
The Build-to-Rent market will continue to expand over the next five years, offering even more homes – and a wider breadth of choice to modern-day renters. On average in London, Movebubble One - the Build-to-Rent properties available on our app receives 7% more enquiries proportionally compared to traditional rental properties managed by private landlords. The future growth of Build-to-Rent is great news as it raises the standard of properties available to renters on our app.