Home Property Build to Rent now accounts for highest market share of private rental stock

Build to Rent now accounts for highest market share of private rental stock

by Seamus Doherty Property Reporter
26th Feb 24 12:15 pm

The latest market analysis by London’s largest lettings and sales estate agent brand, Foxtons, has revealed that the consistent growth across Build to Rent sector means that Build to Rent homes now account for almost 2% of all privately rented properties, climbing to 4.2% in London – the largest proportion of market share seen since 2018.

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

The dedicated Build to Rent team at Foxtons combines decades of experience with an unmatched track record of success. Working alongside developers, they provide comprehensive lettings strategies, while consulting on all aspects of the market, optimising rental pricing, tenancy lengths and maximising renewal rates.

The research shows that in 2018, Build to Rent completions totalled 31,409, accounting for just 0.6% of the 5.5m privately rented homes within the lettings sector.

The Build to Rent sector has grown consistently every year since and in 2020, the number of Build to Rent units found within the rental market sat at 58,844. At 1.1%, this was the first year the sector accounted for more than 1% of the total private rental market.

This number has since climbed to 100,372 in 2023, meaning that the number of Build to Rent units available to private tenants has increased by 69% since 2013.

In contrast, total PRS stock has increased by just 3% during the same period and today, the Build to Rent sector is estimated to account for 1.8% of total private rental market stock – The highest proportion seen since 2018.

This growth in market share is even more impressive when looking at the London market alone.

In 2018, Build to Rent completions accounted for just 1.8% of the capital’s total PRS stock. As with the wider UK picture, Build to Rent completions and market share have increased consistently every year.

Today, Foxtons analysis shows that Build to Rent homes account for a notable 4.2% of the capital’s PRS stock, with Build to Rent completions having increased by 61% since 2018 alone.

Managing Director of Foxtons Institutional PRS and Build to Rent, Sarah Tonkinson, said, “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 PRS 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.”

Leave a Comment

You may also like