Demographics mean Build To Rent set to boom as renters get older

Foxtons says the Build To Rent sector has vast growth potential - and even now in its infancy it is enjoying its fastest growth rate in London.

BTR homes now account for almost 2.0 per cent of all privately rented properties in the UK, climbing to 4.2 per cent in London.

Foxtons analysed annual Build to Rent total market stock since 2018, looking at what proportion of total PRS stock the sector accounts for and how this market share has grown over time. 

In 2018 BTR completions across the UK totalled 31,409, accounting for just 0.6 per cent of 5.5m privately rented homes: by 2020 the number of BTR units hit 58,844, some 1.1 per cent of the private sector. This number has since climbed to 100,372 in 2023.

In London alone in 2018, BTR completions accounted for just 1.8 per cent of private rental stock; today’s it’s 4.2 per cent with completions in the capital having increased by 61 per cent. 

Foxton’s BTR managing director Sarah Tonkinson says: “We’ve seen phenomenal growth across the Build to Rent sector in recent years, particularly within the London market and, as a result, Build to Rent completions now account for their highest proportion of total private rental sector stock. However, it’s fair to say that the sector still remains in its relative infancy and so the potential for further growth is vast. 

“With a move towards longer term renting until later in life, tenants expect more both with respect to the quality of rental accommodation available, and the security and certainty that long tenancy agreements provide them. With the Build to Rent sector offering this, and more, we only anticipate demand to increase and for stock levels to follow suit in order to satisfy the evolving needs of renters.”