Manchester, Liverpool and a number of other prominent towns and cities outside London are providing more rental homes per capita than the capital, according to reports.
Build to Rent as a concept has been growing in prominence since the beginning of 2016, when investment groups and institutions began to see large scale projects of construction specifically with the rental market in mind as the single best option for meeting demand, and needs, in the UK’s rental market.
And now, it would appear that as the sector continues to find its feet and become one of the most important branches of the property market, that regional areas of the UK, those outside of London, are leading the way.
Manchester, Liverpool, Leeds and a number of other cities are starting to show that they have the demand from tenants to support the sector, as well as the backing of investors, many of whom are investing off plan in the future of the private rented sector.
Manchester paves the way for Build to Rent sector
According to the British Property Federation (BPF) data released recently, Manchester has become the shining star of the regions in recent times, with more than 5,500 rental homes currently under construction in the north-west city.
This puts Manchester almost in line with London, where some 6,262 rental homes are currently in the process of being built. However, Manchester’s figure represents a far higher per capita rate of construction than London, showing just how strongly the city is performing for investors in the rental market, and how confident they are in getting behind its future growth.
And it’s not just Manchester that is showing strength at the moment in the regions. Although London has seen more rental homes built overall, at the moment, the pace in the regions is picking up, meaning that there are more homes being built specifically for the rental sector outside of London than in the capital.
The BPF said that when homes already completed and those in planning are included, London counts as many as 38,648 build to rent properties. This is compared to a little over 31,000 in the regions.
High demand for rental homes
However, when it comes down to just homes that are under construction at the moment, the rental market outside of London is outpacing the capital. While London has around 6,262 homes being built at the moment, when all regional towns and cities come together, there are currently 10,244 rooms under construction.
The BPF said of the findings that one of the major changes in the sector is that the size of each project being started is larger than it has been in the past.
“While there is room for major improvement, the research shows that the size of Build to Rent developments is generally getting larger. Twenty-four developments currently in planning will deliver over 500 new rented homes each, whereas completed developments up until now have mostly delivered under 100 homes each,” the report stated.
Andrew Stanford, head of UK residential at LaSalle Investment Management and chairman of the BPF’s Build to Rent committee also added that the growth nationwide is encouraging, and shows that the growth nationwide is encouraging, and shows that construction specifically with the rental market in mind is “no longer a rarity”.
“The rise in prominence of Northern Powerhouse cities like Manchester, Liverpool and Leeds has led to swelling populations and a rise in demand for good quality rental housing. With increasing levels of start-up businesses, improved infrastructure and a greater number of skilled professionals and students moving to these areas, the importance of investment in the UK’s Build to Rent sector will continue to grow,” Dale Anderson, Project Manager at Experience Invest added.
Guest post by Experience Invest.