Home Construction Will a rise in buy-to-let and Build-to-Rent new-builds assist developers in recouping...

Will a rise in buy-to-let and Build-to-Rent new-builds assist developers in recouping their losses?

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According to the British Property Federation, there are currently 167,853 build-to-rent properties in the UK, up 22% over the previous year.

If you were looking to rent a property in Bracknell, data from several studies showed that the number of completed build-to-rent homes jumped by 37% between Q2 2019 and Q2 2020, while the number under construction declined by 5% and the number in planning increased by 27%.

While the sector is planning for future growth, with a significant increase in the number of build-to-rent homes in the planning stage compared to a year ago, the number of starts and completions fell drastically between Q1 and Q2 2020.

Built to rent – 2020

The industry experienced 4,297 starts and 3,417 completions in the first quarter of 2020, but only 1,827 starts and 1,640 completions in the second quarter.

While professional investment corporations frequently fund build-to-rent and manage the development over time, experts agree that today’s data demonstrates the breakdown of the various types of organisations responsible for the construction of new dwellings.

Local developers presently account for 28% of the market, with the remainder made up of UK housebuilders (27%), significant UK developers (17%), contractors (14%), registered providers (9%), and major international developers (9%). (3 percent ).

Though there was a decline as a result of Covid, experts say that it was already declining prior to the outbreak, in some part because housebuilders began to anticipate the conclusion of the Help to Buy scheme and moved their focus to smaller sites that could be completed before the end of the plan.

In addition, sites that have been granted approval have tended to be in lower-demand markets, with supply in high-demand areas being severely limited. This is unlikely to alter, given the government’s renewed commitment to building additional homes in the country’s north.

Investors in built-to-rent

Investor confidence in build-to-rent housing remains high, according to data, with the sector promising to build more new, high-quality rental houses in the UK today than it did a year ago.

The sector will be essential in aiding the government’s ambitious goals of ‘levelling up’ the country’s regions and encouraging a shared recovery in which more people across the country will have a larger range of rental houses to choose from, whether they want or need to rent.

According to Savills, an increase in the number of new houses purchased for buy-to-let and other property investment purposes will help developers recover from the closure of the Help To Buy scheme.

Built-to-rent is the way to go in the future.

It’s probable that the construction industry will be unable to meet investor and other demand. Despite the coming end of Help to Buy, there is still a strong demand for new homes, and we anticipate an increase in the supply of affordable and private rental property to fill the gap left by Help to Buy.

However, a lack of available approved land is limiting developers’ and investors’ ability to build more homes. More consents must be given on a constant basis in high-demand locations.

According to Savills’ latest housing market forecast, house building volumes will not recover to pre-pandemic levels until 2016, and even then, deliveries would fall short of the government’s target of 300,000 homes per year by 60,000.

Building-to-rent is the way to go in the future.

It’s probable that the construction industry will be unable to meet investor and other demand. Despite the coming end of Help to Buy, there is still a strong demand for new homes, and we anticipate an increase in the supply of affordable and private rental property to fill the gap left by Help to Buy.

However, a lack of available approved land is limiting developers’ and investors’ ability to build more homes. More consents must be given on a constant basis in high-demand locations.

According to Savills’ latest housing market forecast, house building volumes will not recover to pre-pandemic levels until 2016, and even then, deliveries would fall short of the government’s target of 300,000 homes per year by 60,000.

In comparison to 2019/20, only the Build to Rent component of the private housing market is predicted to rise significantly in 2025/26. The number of units delivered increased from 7,000 to 14,000 between 2016/17 and 2019/20.

A further doubling would result in the completion of 30,000 homes in five years, or 14% of all new residences in 2025/6. The sector has the ability to expand further, and tenant demand is surely high.

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