Build-to-rent completions jump by 50%
More than 2,860 build-to-rent homes have been completed in the region as of the third quarter of 2017, according to research published by the British Property Federation. This is an increase of 56.5% from the 1,830 completed in the first quarter.
The research, produced by Savills, found the total number of properties under construction in the North West is 7,120, a jump of 21.7% from 5,850 in the first quarter of the year.
Planning applications for built-to-rent homes have risen by 11.6% in the third quarter, from 7,760 to 8,660.
Overall, the number of built-to-rent properties completed, under construction, or in planning as of this month is 18,640, an increase of 20.8% from the 15,430 in the first quarter.
Nationwide, the combined number of build-to-rent homes completed, under construction, or in planning, is closing in on the 100,000 mark at 95,900 properties. Just under 20% are located in the North West.
Current schemes under construction in the region include Dandara Group’s 995-unit development in Chapel Wharf in Manchester, and PlaceFirst’s 250-unit project on Liverpool’s Welsh Streets.
The build-to-rent sector has received support from both national government and the Mayor of London in both the Housing White Paper and the Mayor’s recently published Draft London Housing Strategy respectively.
Typically, schemes are planned, developed and managed by larger pension funds or institutional investors who have purchased land and built buildings specifically with renters in mind. For example, every room in the flat may have an en-suites, more storage, and the building may have better communal facilities.
BPF’s research also suggests that regions are making more progress in greenlighting development, with 12,310 build-to-rent homes currently under construction – compared to 11,700 in London.
Ian Fletcher, BPF’s director of real estate policy, said: “We look forward to the Government’s formal response to the national Housing White Paper, which formally recognised Build-to-Rent in the National Planning Policy Framework.
“We need all housing tenures to be fully supported by the right policy framework if we are going to reverse the damage caused by years of undersupply.”